Securely modifying exchange items in an exchange item marketplace network

ABSTRACT

A method begins with a server in a data communication system establishing an initial validity of an exchange item that includes data regarding a quantifiable value, a serial number, and issuance information, where the initial validity authenticates the exchange item and the data. The method continues with the server executing a secure custody protocol to establish that a first computing device has secure custody of the exchange item and to maintain validity of the exchange item. The method continues with the server transferring the secure custody of the exchange item from the first computing device to the server or to a second computing device. When the exchange item is in the secure custody of the server the method continues with the server modifying the data of the exchange item to produce a modified exchange item and transferring secure custody of the modified exchange item to the first computing device.

CROSS REFERENCE TO RELATED PATENTS

The present U.S. Utility patent application claims priority pursuant to35 U.S.C. §119(e) to U.S. Provisional Application No. 62/354,678,entitled “SECURELY MODIFYING EXCHANGE ITEMS IN AN EXCHANGE ITEMMARKETPLACE NETWORK,” filed Jun. 24, 2016, which is hereby incorporatedherein by reference in its entirety and made part of the present U.S.Utility patent application for all purposes.

STATEMENT REGARDING FEDERALLY SPONSORED RESEARCH OR DEVELOPMENT

NOT APPLICABLE

INCORPORATION-BY-REFERENCE OF MATERIAL SUBMITTED ON A COMPACT DISC

NOT APPLICABLE

BACKGROUND OF THE INVENTION Technical Field of the Invention

This invention relates generally to computer networks and moreparticularly to an exchange item marketplace network.

Description of Related Art

The use of credit cards, debit cards, and gift cards to pay for goodsand services is well known. It is further known to use services such asPayPal™ or Apple Pay™ to expand the use of credit cards and debit cardsthrough computing devices (e.g., computers, tablets, cell phones, etc.).The use of these services is aided by the standardized numbering systemand format used by credit card issuers and debit card issuers.

For a credit card and debit card transaction, the credit or debitcardholder presents the credit or debit card to a merchant (e.g., online or brick & mortar) to pay for a purchase. The merchant uses pointof sale (POS) equipment to capture the information of the credit ordebit card and to enter the amount of the purchase. This information issent to an acquirer (e.g., the financial institution of the merchant).The acquirer sends the transaction information via a secure network of acredit card company to the cardholder's issuer (e.g., a financialinstitution that issued the credit or debit card to the cardholder).

The issuer approves or declines the transaction and sends the responseback to the acquirer via the secure network of the credit card company.The acquirer sends the response (e.g., approved or declined) to themerchant to complete the transaction. Money, however, is not exchangedat the time of purchase, but is done during clearing and settlement.

Clearing and settlement begins when the merchant deposits thetransaction receipt with the acquirer. The acquirer credits themerchant's account and sends the transaction receipt to the issuer viathe secure network. The issuer posts the transaction to the cardholder'saccount. The cardholder pays the issuer in response to receiving amonthly statement.

The issuance and use of a gift card is significantly different than thatof a credit card. FIG. 1 illustrates a diagram regarding the issuanceand use of a gift card. A branded company (e.g., a retailer, a chainstore, a restaurant, etc.) issues a request to create gift cards to aprocessor service. The processor service creates the gift cards, whichmay be issued with specific values or issued as blanks; where the valueis specified at the time of purchase.

The processor service provides the gift cards to a distributor who isresponsible for distributing the gift cards so that a consumer maypurchase them. For example, the distributor may provide gift cards tomerchants so they may sell the gift cards. At some point, a consumerpurchases a gift card (e.g., a sporting goods company gift card for$50.00). The payment for the gift card is processed such that thedistributor, processing service, and branded company each are paid theirrespective shares.

If the gift card is used, a merchant (e.g., a franchise owner of thebranded company) captures information of the gift card via point of sale(POS) equipment. The information of the gift card is processed todetermine if it is a valid gift card and to determine the balanceremaining on the gift card. If the card is valid, the use of the giftcard is authorized up to the balance remaining on the gift card. Oncethe use is complete, the balance is updated, processing fees are paid,and the branded company is debited.

Another difference between credit cards and gift cards is that giftcards do not have a standardized numbering system or format. As such,gift cards can have one of thousands of different numbering systems andformats, which have to be recognizable by the POS equipment.

Yet another different between credit cards and gift cards is when moneyis processed. For credit cards, money is not processed until a purchaseoccurs, while gift cards are purchased and then subsequently used. Assuch, money is processed at the time of purchase of the gift card andagain if the gift card is used.

A still further difference between credit cards and purchased gift cardsis that, if a credit card goes unused, no money is spent. In contrast,if a purchased gift card goes unused, money has been spent to acquirethe card, but no goods or services are acquired. It is estimated thatbillions of dollars worth of purchased gift cards go unused annually.While this may be a favorable scenario for the branded company, it isnot a favorable scenario for consumers.

Raise Marketplace Inc. introduced a system that enables gift cardholdersto sell their unused or unwanted gift cards. This system allows a giftcard seller to post a gift card for sale in a virtual gift cardmarketplace. Buyers can access the virtual gift card marketplace andpurchase gift cards that are offered for sale. When a gift card ispurchased, the system processes the purchase to debit the buyer, creditthe seller, and provide the gift card to the buyer.

The system may provide the physical gift card to the buyer, whichrequires obtaining the physical gift card from the seller and deliveringit to the buyer. Alternatively, the system provides the information ofthe gift card to the user in a voucher format (e.g., a document that thebuyer can print off that includes the relevant information of the giftcard).

BRIEF DESCRIPTION OF THE SEVERAL VIEWS OF THE DRAWING(S)

FIG. 1 is a schematic block diagram of a prior art gift card issuanceand use system;

FIG. 2 is a schematic block diagram of an embodiment of an exchange itemmarketplace network in accordance with the present invention;

FIG. 3 is a schematic block diagram of an embodiment of user device ofexchange item marketplace network in accordance with the presentinvention;

FIG. 4 is a schematic block diagram of an embodiment of a marketplaceserver of exchange item marketplace network in accordance with thepresent invention;

FIG. 5 is a schematic block diagram of an example of operation of anexchange item marketplace network in accordance with the presentinvention;

FIG. 6A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 6B is a schematic block diagram of an embodiment of seller portionof an exchange item marketplace network in accordance with the presentinvention;

FIG. 6C is a schematic block diagram of an embodiment of buyer portionof an exchange item marketplace network in accordance with the presentinvention;

FIG. 6D is a flowchart illustrating an example of exchanging exchangeitems within an exchange item marketplace network in accordance with thepresent invention;

FIG. 7 is a diagram of an embodiment of individual seller verificationin an exchange item marketplace network in accordance with the presentinvention;

FIG. 8 is a logic diagram of an embodiment of a method of individualseller verification in an exchange item marketplace network inaccordance with the present invention;

FIG. 9 is a diagram of an embodiment of bulk seller verification in anexchange item marketplace network in accordance with the presentinvention;

FIG. 10 is a logic diagram of an embodiment of a method of bulk sellerverification in an exchange item marketplace network in accordance withthe present invention;

FIG. 11 is a logic diagram of an embodiment of a method of verificationof an exchange item in an exchange item marketplace network inaccordance with the present invention;

FIG. 12 is a logic diagram of an embodiment of a method of adding anddeleting an exchange item to an exchange item marketplace network inaccordance with the present invention;

FIG. 13 is a logic diagram of an embodiment of a method of buyerverification in an exchange item marketplace network in accordance withthe present invention;

FIG. 14 is a logic diagram of an embodiment of a method of exchange itempayment in an exchange item marketplace network in accordance with thepresent invention;

FIG. 15 is a logic diagram of an embodiment of a method of exchange itembalance update in an exchange item marketplace network in accordancewith the present invention;

FIG. 16 is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 17A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 17B is a schematic block diagram of a transactions block chain inaccordance with the present invention;

FIG. 17C is another schematic block diagram of a transactions blockchain in accordance with the present invention;

FIG. 17D is a logic diagram of an embodiment of a method for generatinga transactions block chain in accordance with the present invention;

FIG. 17E is a logic diagram of another embodiment of a method forgenerating a transactions block chain in accordance with the presentinvention;

FIG. 18A is a logic diagram of an embodiment of a method for utilizingan exchange item in an exchange item marketplace network in accordancewith the present invention;

FIG. 18B is a logic diagram of an embodiment of a method for utilizingrules in an exchange item marketplace network in accordance with thepresent invention;

FIG. 18C is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 18D is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 18E is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 18F is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 18G is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 18H is a diagram of an exchange item database in accordance withthe present invention;

FIG. 18J is another schematic block diagram of a transactions blockchain in accordance with the present invention;

FIG. 18K is a logic diagram of an embodiment of a method for modifyingan exchange item in an exchange item marketplace network in accordancewith the present invention;

FIG. 18L is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 18M is a logic diagram of an embodiment of a method for securelymodifying an exchange item in an exchange item marketplace network inaccordance with the present invention;

FIG. 19A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 19B is a logic diagram of an embodiment of a method for invoking asecure custody protocol in an exchange item marketplace network inaccordance with the present invention;

FIG. 20A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 20B is a logic diagram of an embodiment of a method for verifyingsecure custody of an exchange item in an exchange item marketplacenetwork in accordance with the present invention;

FIG. 21A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 21B is a logic diagram of an embodiment of a method for optimizingexchange item utilization in an exchange item marketplace network inaccordance with the present invention;

FIG. 22A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 22B is a logic diagram of an embodiment of a method fortransferring an exchange item to a secure custody environment in anexchange item marketplace network in accordance with the presentinvention;

FIG. 23A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention; and

FIG. 23B is a logic diagram of an embodiment of a method for creating abranded exchange item in an exchange item marketplace network inaccordance with the present invention.

DETAILED DESCRIPTION OF THE INVENTION

FIG. 2 is a schematic block diagram of an embodiment of an exchange itemmarketplace network 10 that includes user devices 12 of individualsellers, user devices 14 of bulk sellers, user devices 16 of individualbuyers, one or more marketplace servers 18 (an example embodiment isshown in FIG. 4), one or more databases 20, one or more networks 24, oneor more brand server(s) 26, one or more processor servers 28, one ormore distributor servers 30, point of sale (POS) equipment 32, and oneor more retailer servers 34. Hereafter, the exchange item marketplacenetwork 10 may be interchangeably referred to as a marketplace network,a system, a communication system, a data communication system, and acommunication network. The one or more marketplace servers 18 process,and the one or more databases 20 store a virtual marketplace of exchangeitems 22. Hereafter, the virtual marketplace of exchange items 22 may beinterchangeably referred to as a virtual marketplace, a marketplace, andexchange items.

Each of the user devices 12, 14, and 16 is a computing device thatincludes a computing core. In general, a computing device is anyelectronic device that can communicate data, process data, and/or storedata. A further generality of a computing device is that it includes acentral processing unit (CPU), a memory system, user input/outputinterfaces, peripheral device interfaces, and an interconnecting busstructure.

As specific examples, each of the user devices 12-16 may be a portablecomputing device and/or a fixed computing device. A portable computingdevice may be a social networking device, a gaming device, a cell phone,a smart phone, a personal digital assistant, a digital music player, adigital video player, a laptop computer, a handheld computer, a tablet,a video game controller, and/or any other portable device that includesa computing core. A fixed computing device may be a personal computer(PC), a computer server, a cable set-top box, a satellite receiver, atelevision set, a printer, a fax machine, home entertainment equipment,a video game console, and/or any type of home or office computingequipment that includes a computing core. An embodiment of a computingdevice 12-16 is further described below with reference to FIG. 3.

The exchange item marketplace network 10 supports the selling andpurchasing of exchange items. An exchange item is a closed loopfinancial instrument and/or other digital goods. For example, a closedloop financial instrument is a gift card, a voucher, a store credit,and/or other brand company (or merchant) sponsored form of credit for aspecific use (e.g., in a specific store, in a specific chain of stores,for a particular type of goods, etc.). A closed loop financialinstrument is distinguished from an open loop financial instrument, suchas a credit card.

A digital good is digital item that can legally be sold or resold by anindividual. For example, the digital item may be an original digitalbook, an original digital photograph, an original video clip, apurchased video game, a purchased software application, a purchasevideo, a purchased music file, a purchased digital book, a purchasedaudio book, etc.

In support of selling an exchange item, the marketplace server 18communicates with a user device of a seller (e.g., individual or bulk)to verify the user device (and the seller) and to ascertain informationregarding the exchange item being offered for sale. For example, themarketplace server 18 verifies user information (e.g., the seller'sname, account, personal identification number (PIN), a useridentification number (ID), payment account information (e.g., a creditcard number, checking or savings account information), seller's mailingaddress, etc.) and device information (e.g., an IP address, deviceserial number, a marketplace application ID, etc.) of the seller'scomputing device. Verification of the seller and corresponding computingdevice is discussed in greater detail with reference to one or more ofFIGS. 6A-6D, and 7-10.

Upon receiving the information regarding the exchange item, whichincludes a brand name (e.g., a coffee franchise, a sporting goodfranchise, an electronics store, etc.), a serial number, a sellingprice, a remaining balance, restrictions of use, a bar code, and/orother pertinent information, the marketplace server 18 verifies it. Whenthe seller and the information regarding the exchange item are verified,the marketplace server 18 posts it in the virtual marketplace ofexchange items 22, which is stored in database 20.

The marketplace server 18 posts the exchange item in the virtualmarketplace 22 by creating a digital representation of the exchangeitem. To do this, the server creates a digital image of the exchangeitem, determines the brand of the exchange item, and the informationregarding the exchange item (e.g., a brief description, brand, sellingprice, balance, serial number, restrictions (if any), expiration date(if any), and/or any other pertinent information). In accordance with anorganization protocol of the virtual marketplace, the digitalrepresentation of the exchange item is added. For instance, theorganization protocol groups exchange items by types (e.g., restaurants,sporting goods, coffee shops, automotive goods, etc.), by brands (e.g.,a sporting goods chain, a coffee shop chain, etc.), by sales price, bybalance of the exchange item, by a savings value (e.g., a differencebetween the balance and the sales price), by expiration date, by dateoffered for sale, by special promotions, by seller, by restrictions, bya brief description (e.g., title of a video for resale), and/or anyother organization scheme that lends itself to searching for particularitems.

As such, for a particular exchange item offered for sale, its digitalrepresentation is added to the database 20 and will be displayed withina grouping per the organization protocol when a potential buyer or otheruser of the system 10 selects the grouping. In one example, if theexchange item is a gift card, a digital image of the gift card isdisplayed along with at least some of the related information (e.g.,sales price, balance, etc.). If the gift card includes a logo of thebranded company offering the gift card, the logo is often displayed inaccordance with requirements of the branded company.

A potential buyer of an exchange item offered for sale accesses thesystem 10 using its user device 16. For example, the user device 16 logsinto the system 10. If the user device 16 is associated with a buyerthat does not have an account with the system 10, the buyer creates onethrough the user device 16 with the system. For buyers with an account,the marketplace server 18 verifies the buyer user device 16 beforeallowing it access to the virtual marketplace 22. The buyer verificationprocess is discussed in greater detail with reference to one or more ofFIGS. 5, 6A-6D, and 13.

Once the buyer is verified, the buyer computing device 16 is allowedaccess the virtual marketplace 22. The buyer computing device 16 usessearching criteria that are in accordance with the organization protocolto search the virtual marketplace 22 for exchange items of interest. Themarketplace server 18 provides video-graphics data to the buyercomputing device 16 in accordance with the searching. When the buyercomputing device 16 finds exchange items of interest, it displays thevideo-graphics of the corresponding exchange items (e.g., a grouping ofgift cards).

The buyer computing device 16 receives an input corresponding to aselection of one of the exchange items of interest for purchase. Thebuyer computing device 16 sends the selected exchange item to themarketplace server 18 for processing.

The marketplace server 18 processes the selected exchange item via amultiple step process. One step includes verifying that the buyer isauthorized to purchase the exchange item (e.g., has the financialresources, is not limited by buying restrictions (e.g., dollar amount,quantity, type, etc.), is a legitimate buyer, etc.). Another stepincludes verifying integrity of the information of the selected exchangeitem (e.g., balance remaining is accurate, the offer to sell theexchange item has not been withdrawn, the exchange item is not currentlybeing processed for sale to another buyer, the exchange item is notexpired, the exchange item has not been voided by the branded company,etc.).

When the buyer is authorized and the information regarding the selectedexchange item has been verified, another step includes removing theexchange item from the virtual marketplace 22. Another step includesprocessing payment for the selected exchange item. The multiple stepbuying process is further described with reference to one or more ofFIGS. 5, 6A-6D, and 11-14.

FIG. 3 is a schematic block diagram of an embodiment of computing device12-16 of exchange item marketplace network 10. The computing device12-16 includes a computing core 52, one or more input devices 54 (e.g.,keypad, keyboard, touchscreen, voice to text, etc.), one or more audiooutput devices 56 (e.g., speaker(s), headphone jack, etc.), one or morevisual output devices 58 (e.g., video graphics display, touchscreen,etc.), one or more universal serial bus (USB) devices, one or morenetworking devices (e.g., a wireless local area network (WLAN) device84, a wired LAN device 86, a wireless wide area network (WWAN) device 88(e.g., a cellular telephone transceiver, a wireless data networktransceiver, etc.), and/or a wired WAN device 90), one or more memorydevices (e.g., a flash memory device 92, one or more hard drives 94, oneor more solid state (SS) memory devices 96, and/or cloud memory 98), andone or more peripheral devices.

The computing core 52 includes a video graphics processing unit 60, oneor more processing modules 62, a memory controller 64, main memory 66(e.g., RAM), one or more input/output (I/O) device interface module 68,an input/output (I/O) interface 70, an input/output (I/O) controller 72,a peripheral interface 74, one or more USB interface modules 76, one ormore network interface modules 78, one or more memory interface modules80, and/or one or more peripheral device interface modules 82. Each ofthe interface modules 68, 76, 78, 80, and 82 includes a combination ofhardware (e.g., connectors, wiring, etc.) and operational instructionsstored on memory (e.g., driver software) that is executed by theprocessing module 62 and/or a processing circuit within the interfacemodule. Each of the interface modules couples to one or more componentsof the computing device 12-16. For example, one of the 10 deviceinterface modules 68 couples to an audio output device 56. As anotherexample, one of the memory interface modules 80 couples to flash memory92 and another one of the memory interface modules 80 couples to cloudmemory 98 (e.g., an on-line storage system and/or on-line backupsystem).

FIG. 4 is a schematic block diagram of an embodiment of a marketplaceserver 18 of exchange item marketplace network 10. The server 18includes a computing core 122, one or more input devices 54 (e.g.,keypad, keyboard, touchscreen, voice to text, etc.), one or more audiooutput devices 56 (e.g., speaker(s), headphone jack, etc.), one or morevisual output devices 58 (e.g., video graphics display, touchscreen,etc.), one or more networking devices (e.g., a wireless local areanetwork (WLAN) device 84, a wired LAN device 86, a wireless wide areanetwork (WWAN) device 88 (e.g., a cellular telephone transceiver, awireless data network transceiver, etc.), and/or a wired WAN device 90),one or more memory devices (e.g., a flash memory device 92, one or morehard drives 94, one or more solid state (SS) memory devices 96, and/orcloud memory 98), and one or more peripheral devices. Note that theserver 18 may include more or less devices than shown in this exampleembodiment of a server.

The computing core 122 includes a video graphics processing unit 60, aplurality of processing modules 62, a memory controller 64, a pluralityof main memories 66 (e.g., RAM), one or more input/output (I/O) deviceinterface module 68, an input/output (I/O) interface 70, an input/output(I/O) controller 72, a peripheral interface 74, one or more networkinterface modules 78, and/or one or more memory interface module 80.

FIG. 5 is a schematic block diagram of an example of operation of anexchange item marketplace network 10. In this example, an exchange item(EI) issuer 130 issues a plurality of exchange items (e.g., closed loopfinancial instruments and/or other digital goods), which are distributedto consumers by an EI distributor 132. At some point in time, a consumerowns one of the exchange items (e.g., purchases the exchange item, isgiven the exchange item as a gift, is given the exchange item ascompensation, etc.). At some later point in time, the owner of theexchange item decides to sell it.

To sell the exchange item, the owner of the EI evokes an EI marketplace(MP) interface module 142 on its computing device 12 or 14. The EI MPinterface module 142 includes a browser application, a mobile deviceapplication, and/or any type of application that enables access to thevirtual marketplace of exchange items 22. The computing core 52 of theuser device executes one or more of these applications. For instance,each of the applications includes operational instructions that arestored in memory (e.g., main memory, flash memory, SS memory, HD memory,and/or cloud memory) and executed by the processing module 62 of thecomputing core 52. Alternatively, the EI MP interface module 142includes a processing circuit and memory, wherein the memory stores andthe processing circuit executes the operational instructions of theapplication. As yet another alternative, the processing circuit of theEI interface module 142 and the processing module 62 of the computingcore 52 co-process the operational instructions of one or more of theapplications.

With the EI MP interface module 142 operational on the computing device12, the computing device 12 provides information regarding the EI forsale to the server 18 of the network 10. The information includes a typeof EI (e.g., a gift card, a voucher, a credit, a digital good, etc.),brand information, if any, (e.g., a chain store, a restaurant, etc.), abalance remaining on or value of the exchange item, a sales price, aserial number and/or other identifying data regarding the exchange item.

The server 18 digitizes the exchange item to create a digital exchangeitem 152, which is added to the virtual marketplace of exchange items22. For example, if the exchange item is a gift card, the digitalexchange item 152 is a digital representation of the gift card (e.g., arendered digital picture of the gift card, including any relevantlogos). As another example, if the exchange item is a digital good(e.g., a video game), the digital exchange item 152 is a digitalrepresentation of packaging of the digital good. Note that the server 18may be interacting with hundreds to hundreds of thousands of sellercomputing device 12-14 to post exchange items for sale in the virtualmarketplace of exchange items 22.

For a digital exchange item 152 in the virtual marketplace of exchangeitems 22, its digital representation is displayed along with itsrelevant information (e.g., sales price, a discount percentage,restrictions (if any), etc.). The digital exchange item 152 is typicallygrouped and displayed with other like exchange items. For example, ifthe exchange item is a gift card for a particular coffee shop, it isgrouped with other gift cards from the same coffee shop. The grouping oflike exchange items may be further refined by sub-grouping based on oneor more of sales price, time on the marketplace, discount amount,remaining balance, etc.

A buyer desiring to purchase an exchange item offered for sale 160 inthe marketplace of exchange items 22 utilizes its computing device 16and its EI MP interface module 142 to access the marketplace 22. Whileaccessing the marketplace 22, the buyer, via the EI MP interface module142 and the computing device 16 selects one of the exchange items topurchase, which is shaded gray.

The server 18 processes the selection of the exchange item by verifyingthe buyer, the buyer's computing device, the buyer's purchasingabilities, and/or the information regarding the selected exchange item.When verified, the server removes the selected exchange item from themarketplace 22 and places it in the buyer's digital wallet 148. To dothis, the server processes the buyer's wallet information 168 (e.g., thebuyer's ID, buyer account ID, buyer use restrictions (if any), etc.) andEI information 166 of the selected exchange item. For example, thebuyer's digital wallet includes a digital representation of the recentlypurchased exchange item and the corresponding information. The recentlypurchased exchange item is displayed in a categorical manner (e.g., dateof purchase, type of exchange item, value or remaining balance ofexchange item, etc.).

In addition, the server processes the financial transaction for thepurchase of the selected exchange item. For example, the server 18communicates with the financial server of the buyer to receive the fundsfor the purchase. The server then dispenses the funds to the seller,less processing and/or commission fees. The funds may be dispensed toseller in a variety of ways. For example, the server 18 transfers theseller's funds to a financial server of the seller (e.g., the seller'sbank and/or other financial service institution). As another example,the server provides the funds as sales proceeds information 164 to theseller's digital wallet 146, which is maintained by the server 18. Theseller may withdraw the funds as wallet information 170, or a portionthereof, from its wallet (e.g., as instructed via the seller's computingdevice, the server 18 transfers the selected amount of the funds to theseller's financial service's server). As another example, the selleracts as a buyer to buy an exchange item from the marketplace 22 and thefunds in the wallet are used to pay for the purchased exchange item.

When the buyer utilizes the exchange item, certain transactioninformation associated with the utilizing of the exchange item may becommunicated as EI use information 172 to a merchant 140. The EI useinformation 172 includes one or more of a brand identifier, a balance,an amount utilized for a utilization transaction, and a timestamp.

FIG. 6A is a schematic block diagram of another embodiment of anexchange item (EI) marketplace (MP) network that includes the seller'scomputing device 12, the buyer's computing device 16, a seller'sfinancial server 190, a service provider's financial server 192, abuyer's financial server 194, the marketplace (MP) server(s) 18, and thedatabase 20, which includes the virtual marketplace of exchange items22. Each of the seller's computing device 12 and buyer's computingdevice 16 includes the (EI) marketplace interface 142, which includes aweb browser 196 and a mobile application 198.

The MP server 18 performs function blocks that includes a sellerverification 200, a deny 202, an exchange item verification 204, an addexchange item to marketplace 206, a buyer verification 208, a deny 210,an exchange item purchase verification 212, an exchange item paymentprocessing 214, a remove exchange item from marketplace 216, an addexchange item to buyer's wallet 218, an exchange item use 220, and anexchange item balance update 222.

As an example of operation, the mobile application 198 of the seller'scomputing device 12 sends a request to sell an exchange item to themarketplace (MP) server(s) 18. The server 18 performs the sellerverification 200 functional block to determine whether the seller and/orthe seller's computing device 12 are a valid seller (e.g., device and/orseller are valid). When invalid, the server(s) 18 performs the deny 202functional block to communicate a denial of the request to sell theexchange item to the seller's computing device 12.

When the seller is verified, the server performs the exchange itemverification 204 functional block to determine whether the exchange itemis valid (e.g., is a valid exchange item, perform a balance check withan associated entity, i.e., a retailer, etc.). When invalid, theserver(s) perform the deny 202 functional block. When the exchange itemis valid, the server(s) 18 perform the add exchange item to marketplace206 functional block to add a digital representation of the exchangeitem to the virtual marketplace of exchange items 22 (e.g., creates anew entry for inventory within the virtual marketplace of exchange items22).

When a buyer desires to purchase an exchange item, the mobileapplication 198 of the buyer's computing device 16 sends a request tobuy a selected exchange item to the MP server(s) 18. The server(s) 18perform the buyer verification 208 functional block to determine whetherthe buyer is valid (e.g., the user and/or buyer computing device arevalid). When invalid, the server(s) 18 perform the deny 210 functionalblock to issue a denial of the purchase request to the buyer's computingdevice 16.

When the buyer is validated, the server(s) 18 perform the exchange itempurchase verification 212 functional block to verify that the buyer, viathe buyer's computing device, has sufficient means (e.g., money, credit,valid credit card, valid debit card, etc.) to pay for the selectedexchange item. For example, the exchange item purchase verification 212functional block enables the server 18 to receive buyer information fromthe buyer's financial server 194 verifying payment and/or verifying anability to pay. When unable to purchase the selected exchange item, theserver 18 performs the deny 210 functional block.

When the buyer is able to purchase the selected exchange item, theserver 18 performs the exchange item payment processing 214 functionalblock to process payment for the selected exchange item. For example,the server 18 collects payment from the buyer's e-wallet, the buyer'scomputing device 16, or the buyer's financial server 194, issues apayment to the seller's e-wallet, to the seller's computing device, orto the seller's financial server 190, and issues a commission payment tothe service provider's financial server 192.

After processing payment or concurrent with the processing of thepayment, the server 18 performs the remove exchange item frommarketplace 216 functional block to remove the selected exchange itemfrom the virtual marketplace of exchange items 22. For example, theserver 18 deletes an entry associated with the selected exchange itemfrom the database 20.

The server 18 performs the add exchange item to the buyer's wallet 218functional block to facilitate adding the exchange item to a buyer'se-wallet. For example, the server 18 updates a representation of thebuyer's wallet within the database 20 to include a digitalrepresentation of the purchased exchange item and issues a message tothe mobile application 198 to store a local copy of the digitalrepresentation within the buyer's computing device 16.

When the buyer desires to purchase something using an exchange item, themobile application 198 communicates a utilization message to the server18. The server 18 evokes the exchange item use 220 functional block toreceive the utilization message and to facilitate communication withother servers for verification and transaction execution. For example,the server 18 forwards the utilization message to a retailer serverassociated with the exchange item to initiate execution of thetransaction. Having successfully used the exchange item, the server 18,via the exchange item balance update 222 functional block, updates thebuyer's wallet to indicate that the exchange item has been utilized andto update the balance remaining on the exchange item, when appropriate.

FIG. 6B is a schematic block diagram of an embodiment of seller portionof an exchange item marketplace network that includes a plurality ofseller's computing devices 12, the marketplace (MP) server(s) 18, andthe database 20, which stores the virtual marketplace 22. Each of theseller's computing devices 12 include the marketplace interface 142,which includes the web browser 196 and the mobile application 198.

The MP server 18 includes a first module 230 to process receiving ofrequests to sell exchange items 234 and a second module 232 to process aselected request to sell an exchange item. The second module 232includes several sub-modules (e.g., more modules). In an embodiment, thesecond module 232 includes the seller verification 200 functional block,the exchange item verification 204 functional block, and the addexchange item to marketplace 206 functional block.

In an example of operation, the first module 230 receives requests tosell exchange items (EI) 234 from the seller computing devices 12. Eachrequest includes information regarding the exchange item being offeredfor sale 236. The information includes one or more of a selling price,branding information, a description of the exchange item (ifapplicable), a value of the exchange item, restrictions regarding theexchange item, etc.

The first module 230 provides the requests to the second module 232,which processes the requests to sell in a serial manner, in a parallelmanner, and/or in a combined serial-parallel manner. For each request tosell, the second module 232 processes the request via the sellerverification functional block 200, the exchange item verificationfunctional block 204, and the add exchange item to the marketplacefunctional block 206.

The server(s) 18 perform the seller verification functional block 200 toverify seller information (e.g., information regarding the seller and/orinformation regarding the seller computing device). Accordingly, theserver 18 verifies the information regarding the seller and/or sellercomputing device by one or more of verifying user information (e.g.,user name, user account number, personal information number (PIN), useridentifier, payment account info, etc.) associated with the sellercomputing device and verifying device information (e.g., Internetprotocol (IP) address of the seller user device, authorized seller userdevice serial number, the seller user device is utilizing an authorizedmobile application 198, etc.) of the seller computing device.

When the seller information is favorably verified 238, the server 18performs the exchange item verification functional block 204 to verifyinformation regarding the exchange item being offered for sale.Accordingly, the server 18 determines validity of one or more of a brandidentifier (e.g., and/or an exchange item type indicator) of theexchange item, a value of the exchange item, and a serial number of theexchange item. For example, the server 18 compares the informationregarding the exchange item provided by the seller to information and/orrules stored in the database 20. For instance, the server verifies theserial number and/or format of the serial number for the brandidentifier. Further, the server 18 verifies the value of the exchangeitem by issuing a value verification request to an external entity andreceiving a verification response thereto.

When the exchange item is verified 240, the server 18, via the exchangeitem verification 204 functional block, further determines a sellingprice for the exchange item. For instance, the server uses one or moreseller software tools as is discussed with reference to FIG. 16.

The server 18 also performs the add exchange item to marketplacefunctional block 206 to add the exchange item to marketplace of exchangeitems 22 (e.g., a digital exchange item marketplace). The addingincludes creating a digital representation of the exchange item. Thedigital representation of the exchange item includes one or more of animage of the exchange item when the exchange item is a physical entity,the brand, serial number, the value, the selling price, the discountlevel, and the identifier of the seller user device. The adding furtherincludes associating the selling price with the digital representationof the exchange item and adding the digital representation with theassociated selling price to the digital exchange item marketplace. Forexample, the add exchange item to marketplace 206 issues exchange iteminformation 242 to the database 20 for storage in the virtualmarketplace of exchange items 22. The exchange item information 242includes one or more of the association of the selling price to thedigital representation and the digital representation of the exchangeitem.

FIG. 6C is a schematic block diagram of an embodiment of buyer portionof an exchange item marketplace network that includes buyer's computingdevices 16, the marketplace (MP) server(s) 18, the database 20 thatstores the virtual marketplace 22, the buyer's financial server 194, theservice provider's financial server 192, and the seller's financialserver 190. Each buyer computing device 16 includes the marketplaceinterface 142, which includes the web browser 196 and the mobileapplication 198.

The MP server 18 includes a third module 250 to receive requests to buyand a fourth module 252 to process the requests to buy. The fourthmodule 252 includes the buyer verification 208 functional block, theexchange item purchase verification 212 functional block, the exchangeitem payment processing 214 functional block, the remove exchange itemfrom marketplace 216 functional block, and the add exchange item tobuyer's wallet 218 functional block.

In an example of operation, the third module 250 receives requests tobuy 254 from the buyer computing devices. Each request to buy 254includes one or more of a brand identifier, an exchange item (EI) typeindicator, a purchase price, a purchase price range, purchase terms(e.g., payment timing, delivery timing, payment method, etc.), buyerpayment account information (e.g., credit or debit card information,Apple Pay™ information, PayPal™ information, etc.), buyer user deviceinformation (e.g., buyer name, exchange item marketplace identifier,etc.), security information (e.g., buyer PIN, digital securitycertificate information, etc.), and other buyer information (e.g.,security question responses, etc.). The server(s) 18 process therequests to buy in a serial manner, in a parallel manner and/or in aserial-parallel manner. For example, the server 18 may process therequests to buy based on one or more of a random selection, a first infirst out approach, a buyer prioritization approach, a brand basedapproach, a discount level approach, a serial number based approach, anEI value ranking approach, and a market efficiency optimizing approach.

The fourth module 252 begins processing of request to buy information256 via the buyer verification 208 functional block to verify buyerinformation (e.g., buyer information and/or information regarding thecomputing device). The verifying includes one or more of verifying userinformation (e.g., buyer name, buyer account information, buyer PIN,buyer user ID, buyer payment account info, etc.) associated with thebuyer computing device, verifying device information (e.g., buyer userdevice IP address, buyer user device serial number, version of buyer'suser device mobile application 198, etc.) of the buyer computing device,and executing a verification tree process.

The buyer verification 208 functional block includes a verification treeprocess that issues a series of questions to the buyer computing deviceand/or the buyer's financial server 194, receives a series of responsesfrom the buyer computing device, and evaluates the series of responsesin an effort to verify the information regarding the buyer computingdevice.

When the information regarding the buyer computing device is favorablyverified, the server 18 performs the exchange item purchase verification212 functional block to verify payment. The verifying includes verifyinginformation regarding the selected exchange item and verifying buyerpayment account information in light of the verified informationregarding the selected exchange item.

The verifying the information regarding the selected exchange itemincludes one or more of accessing the virtual marketplace of exchangeitems 22 to verify that the selected exchange item is still for sale,verifying that an alternative exchange item is available when theselected exchange item is now unavailable, verifying the balance,verifying the purchase price to a selling price, and verifying that anyselling restrictions are met (e.g., transaction timing, payment type,etc.). The verifying buyer payment account information includes one ormore of receiving buyer information 260 from the buyer's financialserver 194 indicating payment approval, verifying that any buyingrestrictions have been met, and verifying validity of buyer financialpayment information. For example, the exchange item purchaseverification 212 indicates favorable payment verification informationwhen verifying that the selected exchange item is still available forsale at the purchase price and that the buyer user device 16 is able tomake the payment.

When the payment information is favorably verified, the server 18performs the exchange item payment processing 214 functional block toprocess payment for the selected exchange item. The server 18 processesthe payment for the selected exchange item utilizing one or more paymentprocessing steps. As an example of the one or more payment processingsteps, the exchange item payment processing 214 functional blockdetermines a transaction processing fee (e.g., a credit card payment feeof 3% of the selling price), determines a commission fee (e.g., a flatrate fee of 15% of the selling price for the marketplace operator, avariable fee based on other factors, may further include the transactionprocessing fee), debits an account associated with the buyer computingdevice for the selling price of the selected exchange item (e.g.,completing a transaction with the buyer's financial server 194), creditsan account associated with the seller computing device for the sellingprice less the commission fee (e.g., issues payment processinginformation 266 to the seller's financial server 190), and credits oneor more accounts for the transaction processing fee and for thecommission fee (e.g., issuing payment processing information 264 for thecommission fee to the service provider's financial server 192).

When the payment processing information 264 indicates that the paymenthas been successful, the server 18 performs the remove exchange itemfrom marketplace 216 functional block to remove the selected exchangeitem from the digital exchange item marketplace. In addition, the serverperforms the add exchange item to buyer's wallet 218 functional block toadd the selected exchange item to a digital wallet associated with thebuyer computing device. For example, when the digital wallet is active,the server provides a digital representation of the selected exchangeitem and exchange item information to the buyer's computing device fordisplay thereon. For example, the server 18 generates wallet information272 from the exchange item information and sends the wallet information272 to the buyer's computing device 16 for storage and display. Thewallet information 272 includes the digital representation (e.g., animage of the exchange item when the exchange item represents a physicalitem) of the selected exchange item and the exchange item information(e.g., EI type, brand, balance, serial number, PIN, etc.).

FIG. 6D is a flowchart illustrating an example of buying and sellingexchange items within an exchange item marketplace network. The methodincludes step 290 where a processing module of a computing device and/ora server receives requests to sell exchange items from seller computingdevices. For a request to sell, the method continues at step 292 wherethe processing module processes the request to sell by verifyinginformation regarding a seller's computing device associated with therequest to sell. The verifying includes one or more of verifying userinformation (e.g., seller name, seller account, seller PIN, seller ID,seller payment account info, etc.) associated with the seller computingdevice and verifying device information (e.g., seller user device IPaddress, seller user device serial number, seller user deviceapplication information, etc.) of the seller's computing device.

When the information regarding the seller's computing device isfavorably verified, the method continues at step 294 where theprocessing module verifies information regarding an exchange itemidentified in the request to sell. The verifying includes determiningthat a brand identifier of the exchange item, a value of the exchangeitem, and a serial number of the exchange item are valid. When the brandidentifier of the exchange item, the value of the exchange item, and theserial number of the exchange item are valid, the method continues atstep 296 where the processing module determines a selling price for theexchange item. For example, the processing module utilizing sellersoftware tools to establish a selling price.

When the information regarding the exchange item is favorably verified,the method continues at step 298 where the processing module adds theexchange item to a digital exchange item marketplace. The addingincludes one or more of creating a digital representation of theexchange item, associating a selling price with the digitalrepresentation of the exchange item, and adding the digitalrepresentation with the associated selling price to the digital exchangeitem marketplace.

The method includes step 300 where the processing module receivesrequests to buy exchange items from buyer computing devices. For arequest to buy, the method continues at step 302 where the processingmodule begins to processes the request to buy by verifying informationregarding a buyer computing device (e.g., buyer user information and/orinformation regarding the buyer computing device) associated with therequest to buy. The verifying includes one or more of verifying userinformation associated with the buyer computing device (e.g., buyer username, buyer account information, buyer PIN, buyer user ID, buyer paymentaccount info, etc.), verifying device information (e.g., buyer device IPaddress, buyer device serial number, buyer device applicationidentification, etc.) of the buyer computing device, and executing averification tree process.

When the information regarding the buyer computing device is favorablyverified, the method continues at step 304 where the processing moduleverifies payment information associated with the buyer computing deviceregarding purchasing of a selected exchange item (e.g., buyerinformation and exchange item information). The verifying includes oneor more of verifying information regarding the selected exchange item(e.g., the EI is still valid, verify balance, verify selling price,selling restrictions, etc.) and verifying buyer payment accountinformation in light of the verified information regarding the selectedexchange item (e.g., buyer has sufficient funds, any buying restrictionshave been satisfied, buyer financial payment information is valid,etc.).

When the payment information is favorably verified, the method continuesat step 306 where the processing module processes payment for theselected exchange item. The processing of the payment for the selectedexchange item includes one or more steps. Examples of the steps includesdetermining a transaction processing fee (e.g., credit card paymentfee), determining a commission fee (e.g., flat rate for the marketplaceservice provider, variable fee based on other factors, may include thetransaction processing fee), debiting an account associated with thebuyer computing device for the selling price of the selected exchangeitem, deciding to credit an account associated with the seller computingdevice for the selling price less the commission fee, and crediting oneor more accounts for the transaction processing fee and for thecommission fee (e.g., transaction processing fee to credit cardaffiliate, commission less transaction processing fee to market placeoperator/service provider).

The method continues at step 308 where the processing module removes theselected exchange item from the digital exchange item marketplace. Forexample, the processing module updates a database associated with thedigital exchange item marketplace to delete an entry associated with thepurchased exchange item.

The method continues at step 310 where the processing module adds theselected exchange item to a digital wallet associated with the buyer'scomputing device. The adding includes, when the digital wallet isactive, providing a digital representation of the selected exchange itemand exchange item information to the buyer's computer device for displaythereon.

FIG. 7 is a flowchart illustrating an example of seller verification foran individual seller 330 within an exchange item marketplace network.The method includes step 332 where a seller's computing device 12registers with the marketplace network 10 (e.g., with a marketplaceserver 18 via a network). For example, the seller's computing deviceregisters by issuing a registration request to the marketplace server18, where the registration request includes one or more of a selleridentifier, a seller user device identifier, seller payment information,an identifier of an exchange item for sale, and other informationdescribing the exchange item for sale.

The method continues at step 334 where the marketplace server 18 liststhe exchange item for sale. The listing includes updating the virtualmarketplace of exchange items to provisionally include an entry for theexchange item for sale, but not display it for sale. The provisionalentry of the exchange item includes one or more of the identifier of theexchange item for sale, at least some of the other informationdescribing the exchange item for sale, a balance associated withexchange item for sale, and a discount level associated with exchangeitem for sale.

The method continues at step 336 where the marketplace server 18verifies the seller's computing device. The verifying includes one ormore of determining whether to allow the seller to sell the exchangeitem and determining whether to allow the seller's computing device tobe utilized in the selling of the exchange item for sale. The methodcontinues to step 338 where, when the seller computing device has beenfavorably verified, the seller's computing device accepts terms andconditions associated with the offering of the exchange item for salefrom the marketplace server.

FIG. 8 is a flowchart illustrating an example of offering an exchangeitem for sale by an individual seller within an exchange itemmarketplace network. The method begins or continues at step 350 where aseller's computing device associated with an individual seller accessesan exchange item marketplace network. The method continues at step 352where the marketplace server 18 determines whether the individual sellerhas an account with the exchange item marketplace network 10. Forexample, the marketplace server accesses accounts information toidentify an entry associated with the individual seller.

When the individual seller does not have the account, the methodcontinues at step 354 where the marketplace server 18 creates a newentry within the accounts information for the individual user and/orseller user device (e.g., generating the new entry to include one ormore of an identifier of the individual seller, an identifier of theseller user device, a personal identification number (PIN), sellerpayment information, seller address, etc.).

When the individual seller has the account or has just created anaccount, the method continues at step 356 where the seller's computingdevice logs in to access to the exchange item marketplace network. Themethod continues at step 358 where the marketplace server accesses theaccount information for the individual seller. The method continues atstep 360 where the marketplace server determines whether the accessedaccount information for the individual seller is valid. For example, themarketplace server compares a listed address of the seller to a list ofvalid addresses. As another example, the marketplace server receives aquery response to a query request regarding the seller paymentinformation (e.g., verifying banking information).

When the account information is invalid, the method continues at step362 where the marketplace server facilitates performing an alternateverification process. The alternate verification process includes one ormore of informing an operator to perform a manual verification,verifying another aspect of portions of the seller account information,issuing a verification request to an external entity, and interpreting areceived verification response. When the verification was unsuccessful,access to the marketplace is denied.

When the verification was successful, the method continues at step 370where the seller's computing device provides a brand of an exchange itemfor sale. For example, the seller user device issues exchange iteminformation to the marketplace server, where the exchange iteminformation includes an identifier of the exchange item for sale andother information associated with exchange item for sale.

The method continues at step 372 where the marketplace server determineswhether a brand identifier of the exchange item for sale is valid. Forexample, the marketplace server compares the brand identifier to a listof valid brand identifiers. As another example, the marketplace serverinterprets a brand identifier verification response associated with abrand identifier verification request, where the request and responseare exchanged with an external entity. As yet another example, themarketplace server indicates that the brand is valid when a receivedserial number of the exchange item for sale from the seller user devicecompares favorably to at least one valid serial number associated withthe brand.

When the marketplace server determines that the brand identifier isinvalid, the method continues at step 376 where the marketplace serverattempts to create a valid brand (e.g., establishing a new brand forsale). For example, the marketplace server performs a brand analysisalgorithm to produce a brand validity indicator. For instance, themarketplace server issues a brand establishment request to a serverassociated with establishment of a new brand, receives a brandestablishment response, and interprets the brand establishment responseto produce the brand validity indicator. When a valid brand cannot beestablished, the method continues at step 378 where the marketplaceserver denies the request to sell.

When the brand can be established, the method continues at step 380where the marketplace server establishes the brand as a valid brand. Forexample, the marketplace server updates a virtual marketplace ofexchange items to include in association of the brand identifier and avalid brand indicator.

With a valid brand, the method continues at step 374 where the seller'scomputing device provides a personal identification number (PIN) andserial number associated with the exchange item for sale. For example,the seller user device captures an image of the exchange item for sale,sends the captured image to the marketplace server, and the marketplaceserver interprets the captured image to produce the PIN and serialnumber. The method continues at step 382 where the marketplace servertemporarily stores exchange item information. For example, themarketplace server facilitates storage within the virtual marketplace ofexchange items of one or more of the identifier of the exchange item forsale, the serial number of the exchange item for sale, the PIN of theexchange item for sale, the captured image, the brand, the value, and adiscount level.

FIG. 9 is a flowchart illustrating an example of seller verification fora bulk seller 400 within an exchange item marketplace network. Themethod begins or continues at step 402 where the bulk seller registerswith the exchange item marketplace network. For example, a bulk sellerserver associated with the bulk seller's computing device issues aregistration request to a marketplace server of the exchange itemmarketplace network. The registration request includes one or more of anidentifier of the bulk seller and/or the computing device, bankinginformation associated with the bookseller, a descriptor of potentialbulk exchange items for sale.

The method continues at step 404 where the marketplace server verifiesthe bulk seller and/or the bulk seller's computing device. The verifyingincludes one or more of verifying a bulk selling organization andverifying the bulk seller's computing device. For example, themarketplace server performs a credit check on the bulk sellingorganization. As another example, the marketplace server comparesattributes of the bulk seller's computing device (e.g., IP address,access the street, etc.) to expected attributes of the bulk seller'scomputing device. If not verified, the request is denied.

When the bulk seller is verified, the method continues at step 408 wherethe bulk seller's computing device uploads bulk file information to themarketplace server. The bulk file information includes one or more of anidentifier of the bulk selling organization, an identifier of the bulkseller server, identifiers of the exchange items for sale, and otherinformation associated with the exchange items for sale (e.g., saleprice, discount level, serial numbers, personal identification numbers(PINs), etc.). The method continues at step 410 where the marketplaceserver performs bulk listing of information associated with the bulkfile information. For example, the marketplace server adds the exchangeitems for sale to a virtual marketplace of exchange items.

FIG. 10 is a flowchart illustrating an example of offering an exchangeitem for sale by a bulk seller within an exchange item marketplacenetwork. The method includes step 420 where a bulk seller's computingdevice attempts to access an exchange item marketplace network. Forexample, the bulk seller's computing device issues an access request toa marketplace server of the exchange item marketplace network.

The method continues at step 422 where the marketplace server determineswhether the bulk seller has an account with the exchange itemmarketplace network. For example, the marketplace server accessesaccounts information to identify an entry associated with the bulkseller. If not, the method continues at step 424 where the marketplaceserver creates a new entry within the accounts information for the bulkseller and/or bulk seller's computing device (e.g., generating the newentry to include one or more of an identifier of the bulk seller, anidentifier of the bulk seller server, a personal identification number(PIN), bulk seller payment information, bulk seller address, etc.).

When the bulk seller has the account or newly created account, themethod continues at step 426 where the bulk seller server logs in to theexchange item marketplace network. The method continues at step 428where the marketplace server accesses the account information for thebulk seller. The method continues at step 430 where the marketplaceserver determines whether the accessed account information for the bulkseller is valid. For example, the marketplace server compares a listedaddress of the bulk seller to a list of valid addresses. As anotherexample, the marketplace server receives a query response to a queryrequest regarding the bulk seller payment information (e.g., verifyingbanking information).

When the account information is invalid, the method continues at step432 where the marketplace server facilitates performing an alternateverification process. The alternate verification process includes one ormore of informing an operator to perform a manual verification,verifying another aspect of portions of the bulk seller accountinformation, issuing a verification request to an external entity, andinterpreting a received verification response. The method continues atstep 434 where the marketplace server determines whether the alternateverification process successfully verified the account informationassociated with the bulk seller. If not, the access request is denied atstep 436.

When the account information has been verified, the method continues atstep 438 where the bulk seller's computing device uploads exchange itemsfor sale. For example, the bulk seller server sends a bulk sale requestto the marketplace server, where the bulk sale request includes one ormore of identifiers of the exchange items for sale, sale prices,discount levels, serial numbers, personal identification numbers (PINs),etc. The method continues at step 440 where the marketplace serverstores exchange item information for the exchange items for sale. Forexample, the marketplace server stores the identifiers of the exchangeitems for sale, the sale prices, the discount levels, the serialnumbers, the PINs, etc. in a virtual marketplace of exchange itemsassociated with the marketplace server.

FIG. 11 is a flowchart illustrating an example of exchange itemverification within an exchange item marketplace. The method includesstep 462 where a marketplace server of an exchange item marketplaceverifies a personal identification number (PIN) and a serial number ofan exchange item for sale. For example, the marketplace server verifiesthat the serial number conforms to serial number rules associated with aparticular brand associated with the exchange item for sale. As anotherexample, the marketplace server verifies that the PIN corresponds to theserial number in accordance with one or more of the serial number rulesassociated with particular brand and a received serial numberverification response (e.g., from an exchange item brand server).

The method continues at step 464 where the marketplace server determineswhether the verification is favorable. When the verification isunfavorable, the request to add the exchange item to the marketplace isdenied.

When the verification is favorable, the method continues at step 470where the marketplace server obtains balance and sales priceinformation. For example, the marketplace server receives balanceinformation for the exchange item for sale and a desired price as thesales price information. The marketplace server may utilize sellersoftware tools for setting the sales price. For example, when the userrequests automatic price determination, the marketplace serverdetermines at least one of a sales pricing range and a recommended salesprice based on one or more of sales history, seller information,potential buyer information, and exchange item availability information.

The method continues at step 474 where the marketplace server performsan exchange item balance check. For example, the marketplace serverissues a balance check request to a brand server associated withexchange item for sale, receives a balance check response, and comparesa balance received from a seller (e.g., a listed balance) to a balancereceived from the brand server (e.g., an actual balance), where thebalance check request includes one or more of the balance received fromthe seller, the serial number, and the PIN.

The method continues at step 476 where the marketplace server determineswhether the actual balance is substantially equal to zero. If so, therequest is denied. If not, the method continues at step 478 where themarketplace server determines whether the actual balance issubstantially the same as the listed balance. If not, the methodcontinues at step 480 where the marketplace server updates the exchangeitem balance (e.g., within a database of the marketplace) to indicatethe actual balance.

The method continues at step 482 where the marketplace server determinesrestrictions (e.g., online only use, in-store only use, etc.) of theexchange item for sale. The determining may be based on one or more of apredetermination, accessing the database of the marketplace, andinterpreting a restrictions query response from the brand server. Themethod continues at step 484 where the marketplace server determineswhether the restrictions inhibit sale of the exchange item in themarketplace. The determining includes comparing circumstances of sellingexchange items within the marketplace with the restrictions to produce acomparison and interpreting the comparison to determine whether the saleis prohibited. For example, the marketplace server indicates that thesale is prohibited when detecting that a particular restrictionassociated with the exchange item prohibits the sale by the seller(e.g., unauthorized seller). If so, the request is denied. If not, themethod continues at step 486 where the marketplace server approves theexchange item for the marketplace and stores exchange item information(e.g., brand identifier, serial number, PIN, barcode information,exchange item image, actual balance, and the restrictions).

FIG. 12 is a flowchart illustrating an example of adding and/or removingan exchange item within an exchange item marketplace network. The methodincludes step 502 where a marketplace server of the exchange itemmarketplace network creates a digital representation of an exchange itemfor sale. For example, the marketplace server captures a digital imageof a front and back of a gift card exchange item and interprets thecaptured digital image to produce exchange item information (e.g.,brand, value, serial number).

The method continues at step 504 where the marketplace server adds theexchange item (EI) to a database (DB) of the marketplace (MP). Forexample, the marketplace server inserts a new entry into a sorted listof other previously entered exchange items within the databaseassociated with the brand, where the new entry includes the brand, thevalue, the serial number, and a price (e.g., a discounted price ascompared to the value).

The method continues at step 506 where the marketplace server determineswhether to update sales price for the exchange item within the database.The determining may be based on one or more of a request and a marketefficiency pricing algorithm output. For example, the marketplace serverreceives a request from a seller associated with the exchange item tochange the price. As another example, the marketplace server executes amarket efficiency pricing algorithm to produce an indication that theprice should be changed to improve the efficiency of the marketplace. Ifthe price is to be updated, the method continues at step 508 where themarketplace server changes the sales price accordingly. The methodcontinues at step 510 where the marketplace server updates the exchangeitem information in the database of the marketplace.

If the price is not being updated or after the price has been updated,the method continues at step 512 where the marketplace server determineswhether the exchange item has been selected for purchase. If not, themethod continues at step 514 where the marketplace server determineswhether the offer to sell the exchange item has been withdrawn (e.g.,interpreting a request from the seller, in accordance with a withdrawprotocol, accessing the database). If yes, the method continues at step516 where the marketplace server removes the exchange item from thedatabase (e.g., database update to remove the entry associated withexchange item). If not, the method repeats at step 506.

When the exchange item has been selected for purchase, the methodcontinues at step 518 where the marketplace server marks the exchangeitem as selected for purchase. For example, the marketplace serverupdates an entry of the marketplace database to indicate that theexchange item has been selected for purchase, but not yet sold. Themethod continues at step 520 where the marketplace server determineswhether the sale has been finalized. The determining may be based on oneor more of confirming payment from a purchaser, confirming payment tothe seller, and confirming payment to another payee (e.g., a commissionto a market place operator).

When the sale is finalized, the method continues at step 522 where themarketplace server removes the exchange item from the market database(e.g., removes the entry associated with the exchange item from thedatabase), records sale of the exchange item (e.g., notifies a seller ofthe purchase), adds the exchange item to the buyer's e-wallet, andproceeds to a payment process (e.g., to collect payment from thepurchaser).

When the sale is not finalized (e.g., still pending approval of thebuyer's financial information), the method continues at step 524 wherethe marketplace server determines whether the sale is to be voided. Thedetermining may be based on one or more of detecting an unfavorablepayment condition, receiving a sale voided request, and detecting anestimated fraud level that compares unfavorably to a fraud thresholdlevel.

If the sale is to be voided, the method continues at step 526 where themarketplace server undoes the marking of the as selected for purchase(e.g., database updated to reflect that the exchange item is availablefor sale). The method then repeats at step 506.

When the sale is not to be voided, the method continues at step 528where the marketplace server determines whether another request topurchase another exchange item has been received (e.g., a requestpurchase, the same exchange item or a similar exchange item). If not,the method repeats at step 520.

When another request to purchase the exchange item has been received,the method continues at step 530 where the marketplace server determineswhether the marketplace includes another equivalent exchange item (e.g.,performs a database search). If not, the method repeats at step 520. Ifyes, the method continues at step 532 where the marketplace server marksthe equivalent exchange item as selected for purchase and processes thepurchase accordingly. The method branches to step 520 to finalize bothpending sales.

FIG. 13 is a flowchart illustrating an example of buyer verification andexchange item purchase verification within an exchange item marketplace.The method includes step 552 where a buyer's computing device accessesthe exchange item marketplace. For example, the buyer's computing devicesends a registration request to the marketplace server. The registrationrequest includes one or more of an identifier of the buyer, anidentifier of the buyer user device, payment information associated withthe buyer, a security credential, and other buying information (e.g.,buying history, buying preferences, buying terms and conditions, etc.).

The method continues at step 554 where the marketplace server determines(e.g., database access) whether the buyer has an account themarketplace. If not, the method continues at step 556 where themarketplace server determines whether to allow the buyer to proceed as aguest. The determining may be based on one or more of a system securitylevel, a fraud detection algorithm fraud level indicator, a comparisonof the fraud level indicator to a fraud threshold level, a request, apredetermination, a marketplace activity indicator, and a marketplaceefficiency indicator.

If the buyer is allowed to access the system as the guest, the methodcontinues at step 558 where the marketplace server collects the buyer'sinformation (e.g., information contained the request and any otherinformation to support the buyer functioning as a guest in themarketplace), and may, based on the buyer's information, enable thebuyer to further access the marketplace to purchase an exchange item. Ifthe buyer is not allowed to access the system as the guest, the methodcontinues at step 560 where the marketplace server creates an accountfor the buyer (e.g., adds a new entry in the database). The creating ofthe account may include obtaining further information from the buyer.

When the buyer has an account or after the account is created, themethod continues at step 562 where the buyer logs into the marketplace(e.g., accesses the marketplace network). The method continues at step564 where the marketplace server accesses account information for thebuyer (e.g., retrieves buyer information from the database).

The method continues at step 566 where the marketplace server determineswhether the buyer is a valid buyer. For example, the marketplace servercompares one or more aspects of the buyer information to expected valuesof the one or more aspects to produce a comparison and interprets the inlight of a desired pattern for the comparison. For instance, themarketplace server utilizes a decision tree structure to interpret aplurality of fraud detection questions to provide a plurality of frauddetection answers and to interpret the plurality of fraud detectionanswers to indicate whether the buyer is valid.

When the buyer is invalid, the method continues at step 568 where themarketplace server performs an alternate verification process (e.g.,facilitating manual interpretation of risk factors by an operatorassociated with the market place network, invoking a secondary frauddetection algorithm). The method continues at step 570 where themarketplace server determines whether the alternate verification processis successful. If not, the buyer's access to the marketplace is denied.

If the buyer is validated, the method continues at step 582 where themarketplace server facilitates display of brands of exchange itemsavailable for purchase. For example, the marketplace server sendsmarketplace inventory information (e.g., brands, values, discountlevels, etc.) to the buyer's computing device for display thereon. Themethod continues at step 584 where the marketplace server receives abrand selection from the buyer's computing device.

The method continues at step 586 where the marketplace serverfacilitates display of exchange items associated with the selectedbrand. For example, the marketplace server sends marketplace inventoryinformation associated with the selected brand to the buyer's computingdevice for display thereon (e.g., displaying various available balancesand discount levels for exchange items of the brand). In addition, themarketplace server provides the buyer's computing device with exchangeitem information of related brands to the selected brand (e.g., selecteda particular coffee shop, provide exchange items from multiple coffeeshops).

The method continues at step 588 where the marketplace server receives aselection of an exchange item for purchase from the buyer's computingdevice. For example, the buyer's computing device sends the server amessage that includes one or more of the ID of the exchange item, thebrand(s) of the exchange item, a descriptor of the exchange item, avalue of the exchange item, a purchase price of the exchange item, adesired purchase price of the exchange item, a range of a desiredpurchase price of the exchange item, a serial number associated withexchange item, and/or buyer payment information.

The method continues at step 590 where the marketplace server adds theselected exchange item to a cart associated with the buyer (e.g., updatea temporary list of one or more exchange items for purchase). The methodcontinues at step 592 where the marketplace server determines whetherthe buyer intends to keep shopping. The determining may be based on oneor more of detection of the expiration of a shopping timer, receiving anindicator that buyer is still shopping, receiving an indicator that thebuyer has finished shopping. If yes, the method repeats at step 582.

When buyer desires to checkout, the method continues at step 594 wherethe marketplace server determines whether valid payment has beenobtained. The determining includes at least one of verifying a completepayment (e.g., verifying a credit card transaction, etc.) and verifyingthat the buyer is capable of providing full payment (e.g., verifyingpurchase ability on a buyer credit card). If not, the order is voided.Alternatively, the method branches from step 564 to step 582 to performthe steps 582-592, such that steps 566-570 to validate the buyer areperformed after step 592 and before step 594.

If a valid payment is received, the method continues at step 598 wherethe marketplace server determines whether a balance of each selectedexchange item is accurate (e.g., a balance listed in the databasematches a balance check response from a brand server associated with theexchange item). If the balance is not accurate, the transaction isvoided. Note that it may be restarted with adjustments made based on theaccurate balance.

If the balance is accurate, the method continues at step 600 where themarketplace server adds the exchange item to a buyer wallet (e.g., themarketplace server sends exchange item information to the buyer userdevice). The method continues at step 602 where the marketplace servercontinues to proceed to payment to conclude collection of payment fromthe buyer if not already collected and to distribute payment to one ormore payees (e.g., the seller, other payees).

FIG. 14 is a flowchart illustrating an example of exchange item paymentwithin an exchange item marketplace. The method includes step 622 wherea marketplace server associated with exchange item marketplace receivesfunds from a buyer's financial server for payment of a selected exchangeitem for purchase. For example, the marketplace server verifies that acredit card payment shall be made to compensate for purchase of theselected exchange item.

The method continues at step 624 where the marketplace server determineswhether a refund is to be processed for the payment of the exchange itemfor purchase. The determining may be based on one or more of receiving atransaction cancellation request after the funds have been received forpayment, detecting that an estimated fraud level is greater than a fraudthreshold level, and interpreting at least one of a seller or buyerterms and conditions to trigger the refund.

If a refund is to be made, the method continues at step 626 where themarketplace server processes the refund (e.g., reverse a credit cardpayment from the buyer). The method continues to step 628 where themarketplace server adds the selected exchange item back to themarketplace for sale (e.g., re-creates an entry to include the exchangeitem information and stores the entry in a database associated with theexchange item marketplace).

If a refund is not being made, the method continues at step 630 wherethe marketplace server determines whether a payment adjustment is to beprocessed when the refund is not to be processed. The determining may bebased on one or more of interpreting seller terms and conditions, buyerterms and conditions, network operator terms and conditions, and otherpayee's terms and conditions. For example, the marketplace serverinterprets terms and conditions of a credit card company associated withthe buyer that indicates that a 3% fee is required. If an adjustment isrequired, the method continues at step 632 where the server processesthe adjustment.

If no adjustments are to be made or after the adjustment is made, themethod continues at step 634 where the marketplace server calculates acommission for the network operator and/or other payees in accordancewith terms and conditions associated with payment resolution. Forexample, the marketplace server subtracts the 3% credit card fee from agross commission rate of 15% for the network operator to produce a netcommission rate of 12% for the network operator.

The method continues at step 636 where the marketplace server adds theseller's funds to a seller's e-wallet. The adding includes at least oneof indicating a marketplace credit, indicating a cash payment,indicating a payment in accordance with payment information for theseller, and indicating another exchange item as compensation for theseller. The method continues at step 638 where the marketplace servernotifies the seller of funds in the seller's wallet. For example, themarketplace server sends a seller wallet update to a seller user device,where the seller wallet update includes an indication of the funds to beadded the seller's wallet.

The method continues at step 640 where the marketplace server determineswhether a funds withdraw request has been received from the seller'scomputing device. If not, the method continues at step 646 where theserver determines whether it is receiving a purchase request from theseller's computing device, which is now functioning as a buyer'scomputing device. If not, the method repeats at step 640.

When a funds withdraw request is received, the method continues at step642 where the marketplace server sends funds to the seller's financialserver. For example, the marketplace server sends and automaticclearinghouse (ACH) transfer of funds to the seller's financial serverin accordance with seller payment information. The method continues atstep 644 where the marketplace server updates the seller's wallet. Forexample, the marketplace server sends a further update to the selleruser device indicating that the seller's wallet has been updated toinclude the payment.

When a purchase request is received, the method continues at step 648where the marketplace server processes the purchase request. Forexample, the marketplace server indicates that the selected otherexchange item has been removed from the marketplace and transferred tothe seller's wallet. The method continues at step 650 where themarketplace server updates the seller's wallet to debit the amount ofthe purchase just processed.

FIG. 15 is a flowchart illustrating a method that includes step 660where a marketplace server determines whether a new exchange item is tobe added to a buyer wallet associated with the buyer user device. Thedetermining may be based on one or more of processing a purchase requestfor the new exchange item, obtaining a favorable purchase response to apurchase request for the new exchange item, and receiving a paymentresponse indication that includes the new exchange item as compensation.

If a new exchange item is to be added to the buyer's e-wallet, themethod continues at step 662 where the marketplace server and/or thebuyer's computing device creates and stores a digital representation ofthe exchange item. The creating of the digital representation includesat least one of capturing a digital image of the exchange item,interpreting the captured image to produce attributes (e.g., brand,brand logo, serial number, barcode, etc.) of the exchange item, andreceiving the attributes of the exchange item. The method continues atstep 664 where the buyer's computing device and/or the marketplaceserver creates and stores an exchange item file, where the file includesthe digital representation of the exchange item and other informationregarding the exchange item.

The method continues at step 666 where the buyer's computing devicedetermines whether the buyer's wallet is activated (e.g., status check,interpret a query). If not, the method repeats at step 660. If thewallet is activated, the method continues to step 668 where the buyer'scomputing device displays the buyer wallet and wallet navigationinformation (e.g., tools to facilitate searching a plurality of digitalrepresentations of the exchange items associated with the buyer wallet).The method continues at step 670 where the buyer's computing devicedetermines whether an exchange item has been selected for utilization(e.g., to spend down a gift card when the exchange item is the giftcard). If not, the method continues at step 672 where the buyer'scomputing device determines whether the wallet has been deactivated. Ifdeactivated, the method ends. If not deactivated, the method repeats atstep 660.

When an exchange item has been selected, the method continues at step674 where the buyer's computing device determines whether use of theselected exchange item will be via a mobile scan payment (e.g.,displaying a bar code of the exchange item on a display of the buyer'scomputing device). If yes, the method continues at step 676 where thebuyer's computing device displays a bar code of the exchange item and,at step 680, the bar code is read by point of sales equipment of amerchant to execute a purchase.

If mobile scan pay is not being used, the method continues at step 678where the buyer's computing device displays the exchange item file(e.g., including a unique serial number associated with the exchangeitem). The displaying of the exchange item file facilitates manualreading of the unique serial number by an operator of the point-of-saleterminal or similar to facilitate utilization of the exchange item toexecute a purchase.

The method continues at step 680 where the buyer's computing devicedetermines whether the exchange item use has been successfully executedto make a purchase. The determining may be based on one or more ofinterpreting a payment confirmation indicator, receiving a purchaseverification, and receiving an indicator that at least a portion of anavailable balance associated with the exchange item for use has beenutilized. If yes, the method continues at step 682 where the buyer'scomputing device updates balance information in the exchange item file.For example, the buyer user device subtracts a point-of-sale purchaseamount from a previous balance of the exchange item to produce anupdated balance.

If the use of the exchange item was not executed, the method continuesat step 684 where the buyer's computing device determines whether theunsuccessful use of the exchange item to execute a purchase was due toan error of the exchange item. The error may be an expired exchangeitem, insufficient balance on the exchange item, a violated restriction,etc. If it is not an error (e.g., a denial by the POS equipment), themethod continues at step 688 where the transaction is terminated and themethod repeats at step 668.

If it is an error, the method continues at step 686 where the buyer'scomputing device updates the exchange item file based on the exchangeitem error. For example, the buyer user device updates the exchange itemfile correct the balance when the balance mismatch has been indicated.

FIG. 16 is a schematic block diagram of another embodiment of anexchange item marketplace network 10A that includes a plurality ofsellers 702, a plurality of buyers 704, and an on-line exchange itemmarketplace 700. Hereafter, the exchange item marketplace network 10Amay be interchangeably referred to as a system, a communication system,and a communication network. The sellers 702 include individual sellers706, bulk resellers 708, and retailers 710. The buyers 704 includeindividual buyers 712 and other types of buyers 714 (e.g., bulk buyers,resale buyers, etc.).

Each seller 702 and each buyer 704 corresponds to a computing device12-16 that includes a marketplace interface module 716 that enables thecomputing device access to the marketplace 700 and to function therein.The marketplace interface module 716 includes a browser application 722,a mobile device application 720, and/or any type of application thatenables access to the marketplace 700. The computing core 52 of the userdevice executes one or more of these applications. For instance, each ofthe applications includes operational instructions that are stored inmemory (e.g., main memory, flash memory, SS memory, HD memory, and/orcloud memory) and executed by the processing module 62 of the computingcore 52.

Alternatively, the marketplace interface module 716 includes aprocessing circuit and memory, wherein the memory stores and theprocessing circuit executes the operational instructions of theapplication. As yet another alternative, the processing circuit of themarketplace interface module 716 and the processing module 62 of thecomputing core 52 co-process the operational instructions of one or moreof the applications. Interface 718 functions in a similar manner toprovide bulk resellers 708 and/or retailers 710 access and functionwithin the marketplace 700.

One or more marketplace servers 18 supports the online exchange item(EI) marketplace 700 by performing the functions of the correspondingfunctional blocks. The functional blocks include seller software tools738, individual seller fraud detection 724, individual sale processing726, bulk seller verification processing 730, bulk sale processing 732,retailer verification processing 734, retailer sale processing 736,displaying exchange items for sale 728 in the marketplace 700, paymentprocessing 748, MP user e-wallet 750, buyer fraud detection 740,purchase processing 742, consumer profiles 744, and market customization746. A functional block includes one or more of a standalone processingmodule that executes operational instructions to perform thecorresponding functions of the block, a software algorithm executed bythe computer core of the server to perform the corresponding functionsof the block, and/or a combination thereof.

The server(s) 18 perform the marketplace user e-wallet functional block750 to create and maintain an e-wallet for a user of the marketplace700. The e-wallet is essentially a file for an individual user (e.g., aperson, a legal entity, etc.) that stores information regarding exchangeitems bought, sold, and/or used by the user. For example, the e-walletstores a digital representation of each purchased exchange item that hasa value greater than zero. For example, a digital representation of agift card is displayed in an asset section of the e-wallet while thegift card has a balance above zero and the gift card has not expired.When the balance is zero or the gift card expires, the digitalrepresentation is removed and the information regarding the gift card isstored in an archive section of the e-wallet.

The e-wallet is further capable of storing and tracking marketplacecredit. For example, a user may purchase marketplace credit that issubsequently used to purchase an exchange item. In addition, a seller ofan exchange item may be paid in marketplace credit that the seller mayuse to purchase an exchange item or cash out.

The e-wallet further functions to archive data regarding previousexchange item purchases and/or previous exchange item sales. The amountof data stored for each exchange item purchase or sale may be userdefined or set based on a system default setting. For example, the datafor a purchase includes one or more of a purchase price, the exchangeitem ID, a serial number, a brand name, a purchase date, the value ofthe exchange item, restrictions of the exchange item, and an expirationdate. The data for a purchased exchange item may further include useinformation (e.g., when the exchanged item was used, the amount of valueused, the date of use, the place of use, etc.) and/or remaining valueinformation.

As another example, the data for a sale includes one or more of anasking selling price, a sold price, the exchange item ID, a serialnumber, a brand name, an offer for sale time stamp, a sold time stamp,the value of the exchange item, restrictions of the exchange item, andan expiration date. The data for a sold exchange item may furtherinclude price reduction information (e.g., the amount of the change, achange time stamp, etc.) and/or information regarding a withdrawal of anoffer for sale.

The server(s) 18 perform the seller software tools functional block 738to assist a seller (e.g., individual, bulk, or retailer) in setting aprice for an exchange item. For example, the server(s) 18 record dataregarding exchange items offered for sale, data regarding purchases ofexchange items, and data regarding exchange items for which the offerfor sale was withdrawn. From this data, the server(s) 18 determinespredictive sales information. For example, the server(s) 18 determinesfor a particular type of exchange item (e.g., a gift card for aparticular franchise) a correlation between the value of the exchangeitem and duration in the marketplace (e.g., a $250 gift card has anaverage duration of 1 day, a $100 gift card has an average duration of12 hours, a $50 gift card has an average duration of 5 hours, etc.).

As another example of predictive sales information, the server(s) 18determine a correlation between sales price and duration in themarketplace (e.g., a 5% discount has an average duration of 12.5 hours,a 3% discount has an average of 1 day, and a 10% discount has an averageduration of 1.5 hours). As yet another example, the server(s) 18determine a periodic sales volume for a particular exchange item (e.g.,how many sold in an hour, six hours, a day, etc.). As yet anotherexample, the server(s) 18 determine a current quantity of the particularexchange items for sale (e.g., how many are currently being offered forsale, at what sales price, the current average duration in themarketplace, etc.). The server(s) 18 may further analyze any type ofdata maintained by the system 10A to assist in the creation ofpredictive sales information.

In addition to creating the predictive sales information, the server(s)18 generate a seller's profile, which includes information regarding thesales tendencies and/or preferences of a particular seller. For example,the seller's profile includes information regarding one or more of thetypes of exchange items offered for sale, information regarding if andwhen exchange item offers for sale are withdrawn, initial asking pricesfor exchange items offered for sale, actual sales price information andcorresponding discounted percentage, frequency for which initial askingprice is adjusted, average duration of exchange items in themarketplace, standard deviation of duration of exchange items in themarketplace, etc.

From the predictive sales information and the seller's profile, theserver(s) 18 provide a suggested sales price for a particular exchangeitem. For example, the seller profile indicates that the seller has atendency to offer a particular exchange item with a minimal discount andprefers that the exchange item remain in the marketplace for less than 6hours. Further, the predictive sales information for the particularexchange item indicates that there is currently above normal quantity ofthe exchange item for sale, the current asking price has a greaterdiscount than the seller's preference, and the current average durationin the marketplace is 7 hours, the server(s) 18 provides one or morerecommendations and corresponding predictive outcomes (e.g., an initialasking price below the seller's profile to sell the exchange item within6 hours, an initial asking price corresponding to the seller's profileto sell the exchange item within 11 hours, etc.). The server(s) 18 mayfurther provide the predictive sales information to the seller'scomputing device.

The server(s) 18 perform the individual seller fraud detectionfunctional block 724 to automate detection of a fraudulent seller and/ora fraudulent exchange item. This includes the seller verification andthe exchange item verification as discussed in one or more of FIGS.6A-6D, and 7-11. The fraud detection further includes an automatedprocess for resolving a potential fraud issue. For example, when averification of seller falls between verified and not verified, theserver(s) 18 evoke a process to render a definitive verificationdecision. As another example, when the verification of an exchange itemfalls between verified and not verified, the server(s) 18 evoke aprocess to render a definitive verification decision.

To extend the use of the marketplace to retailers or branded companies(i.e., the entity that initiates a gift card and ultimately accepts thegift card as payment), the server(s) 18 perform the retailerverification processing functional block 734 and the retailer saleprocessing functional block 736. The retailer verification processingfunctional block 734 includes one or more of setting up an account for aretailer to sell exchange items via the marketplace, verifying theretailer at least at the setup of the account and potentially for eachtransaction conducted via the marketplace, verifying the exchange itemsbeing offered for sale, and/or other verification mechanisms. As anexample, a secure portal is established between the retailer seller andthe marketplace server(s) 18 such that any communications via the secureportal is at least initially deemed a valid communication.

The retailer sale processing functional block 736 includes one or moreof creating digital representations of the exchange items offered forsale, determining selling parameters and posting the digitalrepresentations and the parameters in the marketplace. The sellingparameters include one or more of sales price, listing duration beforechanging price, restrictions, withdraw procedures, etc.

The server(s) 18 perform the buyer fraud detection functional block 740to automate detection of a fraudulent buyer and/or fraudulent financialinformation used for purchasing. This includes the buyer verificationand the purchase verification as discussed in one or more of FIGS. 5,6A-6D, and 13. The fraud detection further includes an automated processfor resolving a potential fraud issue. For example, when a verificationof buyer falls between verified and not verified, the server(s) 18 evokea process to render a definitive verification decision. As anotherexample, when the verification of financial information falls betweenverified and not verified, the server(s) 18 evoke a process to render adefinitive verification decision.

The server(s) 18 perform the payment processing functional block 748 toprocess payment through the user e-wallets of the seller and of thebuyer. For instance, payment by the buyer is made from the buyer'se-wallet by debiting a credit card, a checking account, a savingsaccount, a currency balance (e.g., money on account for purchases),and/or marketplace credit. Payment to the seller is made by creditingthe seller's e-wallet with currency, marketplace credit, and/or someform of financial receipt. The mechanics of the payment process includethe functionality described in one or more of FIGS. 5, 6A-6D, and 11-14.

The server(s) 18 perform the consumer profiles functional block 744 fora buyer. For the buyer, its consumer profile includes data regardingexchange item purchases of the buyer. The data includes one or more ofthe exchange items purchased, frequency of purchases, average purchaseprice, average value of purchased like exchange items (e.g., coffee shopgift cards), preferred discounts, etc. Note that this may be included inthe buyer's e-wallet or maintained as a separate file.

The server(s) 18 perform the market customization functional block 746to customize marketing of exchange items being offered for sale toparticular buyers based on their buyer profiles. The marketcustomization functional block 746 further includes determining a typeand a quantity of exchange items a retailer should offer for sale anddirecting marketing efforts to a particular segment of buyers. In thismanner, the system 10A efficiently and effectively couples exchangeitems for sale to buyers who typically buy such exchange items.

The server(s) 18 perform the individual sales processing function block726, the bulk seller verification processing functional block 730, thebulk sale processing functional block 732, and the purchase processingfunctional block 742 as described with reference to one or more of FIGS.2, 5, 6A-6D, and 7-10. The server(s) 18 also perform the displayingexchange items for sale functional block 728 to add/remove/edit anexchange item in the marketplace 700 as described with reference to oneor more of FIGS. 2, 5, 6A-6D, 7-10, and 12.

FIG. 17A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes an EI distributor 800,the seller's computing device 12, the MP server(s) 18, the database 20,the buyer's computing device 16, and a retailer computing device 802.Alternatively, the MP server may include the database 20, where thevirtual marketplace of exchange items 22 is stored as one or moretransaction blockchains of a secure custody protocol. The EI distributor800 may be implemented utilizing one or more of the distributor servers30 of FIG. 2, the brand server(s) 26 of FIG. 2, the MP server 18, and amerchant server (e.g., any entity acting on behalf of a brand in adistributor role). The retailer computing device 802 may be implementedutilizing one or more of the point-of-sale (POS) equipment 32 of FIG. 2,a merchant server, and the retail servers 34 of FIG. 2. The seller'scomputing device 12 includes the marketplace interface 142. The buyer'scomputing device 16 includes the marketplace interface 142 and the flashmemory 92 of FIG. 3. The marketplace interface 142 includes the mobileapp 198. The exchange item marketplace network functions to generate atransactions blockchain while facilitating a plurality of exchange itemtransactions. For example, a transactions block chain is maintained foreach exchange item. As another example, the transactions block chain ismaintained for a plurality of exchange items. As yet another example, asingle transactions block chain is maintained for all the exchange itemsfor the entire virtual marketplace of exchange items 22. Thetransactions blockchain includes a block associated with eachtransaction of the plurality of exchange item transactions. Each blockincludes a header section and a transaction section. A structure of thetransactions blockchain is discussed in greater detail with reference toFIGS. 17B-C.

In an example of operation of the generating of the transactionsblockchain, the EI distributor 800 generates a block 0 of thetransactions blockchain to establish exchange item (EI) information whendetermining to offer an exchange item for sale. The determining may bebased on one or more of receiving a purchase request from the seller'scomputing device 12, receiving a bulk EI creation request, receiving theEI information from one or more of a branded company server and aprocessor service, and interpreting a schedule. For example, the EIdistributor 800 determines to establish the EI information whenreceiving, via the processor service, EI information for a plurality ofexchange items from the branded company server. As another example, theEI distributor 800 determines to establish the EI information whenreceiving, via a retail point-of-sale device, a purchase request for theEI from the seller's computing device 12.

Having determined to offer the EI for sale, the EI distributor 800obtains the EI information. The obtaining includes receiving the EIinformation from the processor service and generating the EIinformation. The generating the EI information includes obtaining one ormore of available balance, serial number, personal identification number(PIN), brand, EI type, expiration date, pricing approach, purchaserestrictions, a hash of one or more of the elements of the EIinformation (e.g., a secure hash of the EI type using a private key of aprivate/public key pair of the brand server(s) 26), and the public keyof the private/public key pair of the brand server(s) 26. Havingobtained the EI information, the EI distributor 800 generates the block0 to include the EI information.

The generating of the block 0 includes populating the block zero with arepresentation of the EI information and establishing trust for theblock 0 utilizing a trust approach. The trust approach includes at leastone of a digital signature approach utilizing a private key of aprivate/public key pair of the EI distributor 800 and encrypting the EIinformation utilizing the private key of the private/public key pair ofthe EI distributor 800 to produce the representation of the EIinformation. For example, the EI distributor 800 encrypts the EIinformation and the public key of the EI distributor 800 utilizing theprivate key of the EI distributor 800 to produce the transaction sectionof the block 0 when utilizing the encryption trust approach. As anotherexample, the EI distributor 800 utilizes the private key of the EIdistributor 800 to generate a digital signature over the EI informationand the public key of the EI distributor 800 to produce the transactionsection of the block 0.

When receiving the EI purchase request from the seller's computingdevice 12, the EI distributor 800 generates a block 1 of the EItransactions chain to indicate that the seller's computing device 12 ispurchasing the EI from the EI distributor 800, where the block 1 ischained to the block 0 in accordance with a trusted chaining approach,and where the block 1 is generated utilizing the trust approach (e.g.,as utilized when generating the block 0). The trusted chaining approachis discussed in greater detail with reference to FIG. 17C.

The generating of the block 1 includes generating seller to distributorpayment information 1 (e.g., purchase price of this transaction, atimestamp of this transaction, purchaser identifier, and the transactionportion of the previous block), and establishing trust for the block 1utilizing the trust approach. For example, the EI distributor 800obtains a public key of a private/public key pair of the seller'scomputing device 12, encrypts the seller to distributor paymentinformation 1 and the public key of the seller's computing device 12utilizing the private key of the EI distributor 800 to produce thetransaction portion of the block 1 when utilizing the encryption trustapproach. As another example, the EI distributor 800 utilizes theprivate key of the EI distributor 800 to generate a digital signatureover the seller to distributor payment information 1 and the public keyof the seller's computing device 12 to produce the transaction sectionof the block 1.

Having generated the block 1 chained to the block 0, the EI distributor800 issues secure EI information 804 to the seller's computing device12. The issuing includes generating the secure EI information 804 toinclude the EI transactions chain (e.g., blocks 0-1) and sending thesecure EI information 804 to the seller's computing device 12.

When determining to offer the EI for sale via the virtual marketplace ofexchange items 22, the seller's computing device 12 issues secure EIinformation 806 to the MP servers 18, where the secure EI information806 includes one or more of the secure EI information 804 and a requestto sell the EI via the virtual marketplace of exchange items 22. Havingreceived the secure EI information 806, MP servers 18 communicatespricing information 808 with the seller's computing device 12, where thepricing information 808 includes one or more of a desired price, adesired price range, a recommended price range, a recommended price, anda confirmed price.

Having communicated the confirmed price, the seller's computing device12 and the MP servers 18 communicates secure sale information 810. Forexample, the MP servers 18 updates inventory information 809 (e.g.,brand, balance, price, expiration date, volume, pricing rules by brand,etc.) to provide a representation of the EI for storage in the database20 based on the transaction portion of the block 1, the MP servers 18provides a public key of a private/public key pair of the MP servers 18to the seller's computing device 12, and the seller's computing device12 generates a block 2 of the EI transactions chain to indicate that theMP servers 18 is representing the EI for purchase by a buyer's computingdevice 16, where the block 2 is chained to the block 1 in accordancewith the trusted chaining approach, and where the block 2 is generatedutilizing the trust approach (e.g., as utilized when generating theblock 1).

The generating of the block 2 includes generating a marketplace toseller representation and/or payment information 2 (e.g., desired price,a timestamp of this transaction, purchaser identifier, and thetransaction portion of the previous block), and establishing trust forthe block 2 utilizing the trust approach. For example, the seller'scomputing device 12 obtains the public key of a private/public key pairof the MP servers 18, encrypts the seller representation and/or paymentinformation 2 and the public key of the MP servers 18 utilizing theprivate key of the seller's computing device 12 to produce thetransaction section of the block 2 when utilizing the encryption trustapproach. As another example, the seller's computing device 12 utilizesthe private key of the seller's computer device 12 to generate a digitalsignature over the seller representation and/or payment information 2and the public key of the MP servers 18 to produce the transactionportion of the block 2.

Having generated the block 2 chained to the block 1, the seller'scomputing device 12 issues the secure sale information 810 to the MPservers 18. The issuing includes generating the secure sale information810 to include the EI transactions chain (e.g., blocks 0-2) and sendingthe secure sale information 810 to the MP servers 18.

When determining to purchase the EI for sale via the virtual marketplaceof exchange items 22, the buyer's computing device 16 issues an EIpurchase request 812 to the MP servers 18, where the EI purchase request812 includes a request to purchase the EI (e.g., buyer's computingdevice 16 identifier, public key of a private/public key pair of thebuyer's computing device 16, a purchase price, etc.). Having receivedthe EI purchase request 812, the MP servers 18 communicate secure buyerwallet information 814 with the buyer's computing device 16. Forexample, the buyer's computing device 16 sends payment instructions tothe MP servers 18 (e.g., purchase price, payment account information),the MP servers 18 generates a block 3 of the EI transactions chain toindicate that the buyer's computing device 16 is purchasing the EI forthe purchase price amount, where the block 3 is chained to the block 2in accordance with the trusted chaining approach, and where the block 3is generated utilizing the trust approach (e.g., as utilized whengenerating the block 2).

The generating of the block 3 includes generating buyer to marketplacepayment information 3 (e.g., a confirmed purchase price, paymentinstructions, a timestamp of this transaction, purchaser identifier, andthe transaction portion of the previous block), and establishing trustfor the block 3 utilizing the trust approach. For example, the MPservers 18 obtains the public key of the private/public key pair of thebuyer's computing device 16, encrypts the buyer to marketplace paymentinformation 3 and the public key of the buyer's computing device 16utilizing the private key of the MP servers 18 to produce thetransaction section of the block 3 when utilizing the encryption trustapproach. As another example, the MP servers 18 utilizes the private keyof the MP servers 18 to generate a digital signature over the buyer tomarketplace payment information 3 and the public key of the buyer'scomputing device 16 to produce the transaction section of the block 3.

Having generated the block 3 chained to the block 2, the MP servers 18issues secure buyer wallet information 814 to the buyers computingdevice 16. The issuing includes generating the secure buyer walletinformation 814 to include the EI transactions chain (e.g., blocks 0-3)and sending the secure buyer wallet information 814 to buyer's computingdevice 16, where the mobile app 198 facilitates storage of thetransactions chain as a secure EI record 822 in the flash memory 92.

When the buyer's computing device 16 determines to utilize the EI forpayment of a transaction with the retailer computing device 802, thebuyer's computing device 16 sends a transaction request 816 to theretailer computing device 802, where the transaction request 816includes one or more of a retail transaction identifier of thetransaction with the retailer computing device 802, and paymentinstructions that identifies the EI.

Having received the transaction request 816 the retailer computingdevice 802 and the buyer's computing device 16 communicate securebalance verification 818. The communicating of the secure balanceverification information 818 includes the buyer's computing device 16sending one or more of the secure EI record 822 (e.g., blocks 0-3) tothe retailer computing device 802 and the public key of theprivate/public key pair of the MP servers 18.

Having received the secure EI record 822, the retailer computing device802 verifies that a sufficient balance level is associated with thesecure EI record 822 to facilitate completion of the transaction request816. For example, the retailer computing device 802 decrypts the securetransaction section of the secure EI record 822 utilizing the public keyof the MP servers 18 to reveal the balance level and a public key of thebuyer's computing device 16 for verification with a public key receiveddirectly from the buyer's computing device 16. The retailer computingdevice 802 indicates favorable verification when the revealed balancelevel is sufficient and the received public key from the buyer'scomputing device 16 compares favorably (e.g., substantially the same) tothe revealed public key from the secure EI record 822. As anotherexample, the retailer computing device 802 verifies a signature over thesecure transaction portion of the secure EI record 822 utilizing thepublic key of the MP servers 18 to verify the balance level and toverify the public key of the buyer's computing device 16. The retailercomputing device 802 indicates favorable verification when the verifiedbalance level is sufficient and the public key from the buyer'scomputing device 16 is verified from the secure EI record 822. As yetanother verification example, the retail computing device 802 decryptsthe hash of the one or more of the elements of the EI information usingthe private key of the EI distributor 800 (e.g., or a brand server(s)26) and indicates favorable verification when the decrypted hash issubstantially the same as a calculated hash over the one or more of theelements of the EI information. As such, the EI can be considered alegitimately issued EI from the brand server(s) 26 (e.g., from the brandowner).

When the verifications are favorable, the retailer computing device 802and the buyer's computing device 16 communicate secure transactioncompletion 820. For example, the buyer's computing device 16 sendspayment instructions to the retailer computing device 802 (e.g.,purchase price, EI information), the buyer's computing device 16generates a block 4 of the EI transactions chain to indicate that thebuyer's computing device 16 is utilizing the EI for the purchase priceamount, where the block 4 is chained to the block 3 in accordance withthe trusted chaining approach, and where the block 4 is generatedutilizing the trust approach (e.g., as utilized when generating theblock 3).

The generating of the block 4 includes generating buyer to retailerpayment information 4 (e.g., a confirmed purchase price, paymentinstructions utilizing the EI, a timestamp of this transaction,purchaser identifier, and the transaction portion of the previousblock), and establishing trust for the block 4 utilizing the trustapproach. For example, the buyer's computing device 16 obtains thepublic key of the private/public key pair of the retailer computingdevice 802, encrypts the buyer to retailer payment information 4 and thepublic key of the retailer computing device 802 utilizing the privatekey of the buyer's computing device 16 to produce the transactionsection of the block 4 when utilizing the encryption trust approach. Asanother example, the buyer's computing device 16 utilizes the privatekey of the buyer's computing device 16 to generate a digital signatureover the buyer to retailer payment information 4 and the public key ofthe retailer computing device 802 to produce the transaction section ofthe block 4.

Having generated the block 4 chained to the block 3, the buyer'scomputing device 16 issues the secure transaction completion 820 to theretailer computing device 802. The issuing includes generating thesecure transaction completion 820 to include the EI transactions chain(e.g., blocks 0-4) and sending the secure transaction completion 820 tothe retailer computing device 802, where the mobile app 198 mayfacilitate storage of an updated transactions chain as an updated secureEI record 822 in the flash memory 92. Alternatively, or in addition to,each of the seller's computing device 12, the MP servers 18, and thebuyer's computing device 16 may validate information within the EItransactions chain by validating the chaining of each block to a nextblock utilizing the trusted chaining approach and may further validateinformation with the EI transactions chain by validating integrity ofthe transaction section of one or more of the blocks utilizing the trustapproach (e.g., verifying a signature, decrypting an encryptedtransaction to reveal a public key for verification).

In another example of operation of the generating of the transactionsblockchain, at least one of the EI distributor 800, the seller'scomputing device 12, and the MP server(s) 18, authenticates value of anexchange item to produce an authenticated value of the exchange item.The exchange item includes one of a closed loop financial instrument anda digital good. The authenticating of the value includes a variety ofauthenticating approaches.

A first authenticating approach includes the seller's computing device12 authenticating the value of the exchange item via a communicationwith a brand server (e.g., issue an authentication request, interpret areceived verification response to identify an available balance of theexchange item associated with the brand server), generating a secureexchange item package, and securely passing, by the seller's computingdevice 12 to the marketplace servers 18, control over the secureexchange item package such that the marketplace server 18 obtains thecontrol over the secure exchange item package. The securely passingincludes updating a transaction section of the secure exchange itempackage by including a public key of a recipient device (e.g., themarketplace servers 18) of the secure exchange item package and signingthe secure exchange item package by a transferring device (e.g., theseller's computing device 12) of the secure exchange item package. Thesecure exchange item package includes a header section and a transactionsection. The secure exchange item package is discussed in greater detailwith reference to FIG. 17C. A second authenticating approach includesthe MP server(s) 18 authenticating the value of the exchange item viathe communication with the brand server, generating the secure exchangeitem package, and obtaining control over the secure exchange itempackage as a result of being an originator of the secure exchange itempackage.

With the authenticated value of the exchange item produced, themarketplace servers 18 obtains control over the secure exchange itempackage, where the secure exchange item package includes identity of theexchange item, identity of an authenticated owner of the exchange item,identity of the marketplace server, and the authenticated value (e.g.,face value of the exchange item or remaining balance of the exchangeitem) of the exchange item and where only a device possessing controlover the secure exchange item package may modify the secure exchangeitem package.

As an example of the obtaining of the control, the marketplace servers18 receives from the seller's computing device 12, a request to sell theexchange item (e.g., receives the secure EI information 806). Inresponse to valid processing of the request to sell (e.g., communicatingpricing information 808), the seller's computing device 12 securelypasses, to the marketplace servers 18, control over the secure exchangeitem package (e.g., communicates secure sale information 810). Havingobtained control, the marketplace servers 18 lists a representation ofthe exchange item for sale by storing associated inventory information809 in the database 20 to update the virtual marketplace of exchangeitems 22.

With the exchange item represented within the virtual marketplace ofexchange items 22, the marketplace server 18 receives, from the buyer'scomputing device 16, a request to purchase the exchange item (e.g., theEI purchase request 812). Having received the request to purchase theexchange item, the marketplace servers 18, in response to validprocessing of the request to purchase the exchange item (e.g.,exchanging secure buyer wallet information 814), securely passes to thebuyer computing device 16, control over the secure exchange item package(e.g., via the secure buyer wallet information 814). Having received thesecure buyer wallet information 814, the mobile app 198 stores thesecure buyer wallet information 814 as the secure EI record 822 in theflash memory 92.

For use of the exchange item (e.g., as initiated with the transactionrequest 816), the buyer computing device 16 securely passes, to theretailer computing device 802 (e.g., the merchant server), control overthe secure exchange item package. The use may further include theretailer computing device 802 into verifying that the balance of theexchange item is sufficient for a purchase transaction by communicatingsecure balance verification 818 with the buyer's computing device 16.

With control over the secure exchange item package, the merchant server(e.g., the retailer computing device 802) executes use of the exchangeitem by updating the value of the exchange item to produce an updatedvalue of the exchange item. For example, the retailer computing device802 subtracts an amount of the purchase transaction (e.g., for goodsprovided by a retailer to a user of the buyer's computing device 16)from the value of the exchange item to produce the updated value of theexchange item.

Having generated the updated value of the exchange item, the retailercomputing device 802 generates an updated secure exchange item package,where the updated secure exchange item package includes identity of theexchange item, identity of the merchant server, identity of the buyercomputing device, and the updated value of the exchange item. Havinggenerated the updated secure exchange item package, the merchant server(e.g., the retailer computing device 802) securely passes control overthe updated secure exchange item package to the buyer's computing device16 (e.g., by communicating the secure transaction completion 820).

Alternatively, or in addition to, for a second use of the exchange item,the buyer's computing device 16 securely passes, to a second merchantserver, control over the updated secure exchange item package. Thesecond merchant server executes the second use of the exchange item byupdating the updated value of the exchange item to produce a secondupdated value of the exchange item, generating a second updated secureexchange item package, where the second updated secure exchange itempackage includes identity of the exchange item, identity of the secondmerchant server, identity of the buyer's computing device 16, and thesecond updated value of the exchange item, and securely passes, to thebuyer's computing device 16, control over the second updated secureexchange item package.

FIG. 17B is a schematic block diagram of a transactions blockchain wherethe transactions blockchain includes a plurality of blocks. Thetransactions blockchain represents an exchange item (EI) transactionchain when the plurality of blocks include exchange item transactionsections. Each block includes a header section and a transactionsection. Each other portion links one block to other block in asequential fashion. The linking is discussed in greater detail withreference to FIG. 17C. The transaction section includes EI transactioninformation associated with an EI transaction between two or moreentities of an exchange item marketplace. For example, the block 0includes valuable establishment 0 transaction information with regardsto a genesis of a particular exchange item to be available to entitiesof the exchange item marketplace, the block 1 includes seller todistributor payment information 1 transaction information with regardsto the seller's computing device 12 purchasing the EI from the EIdistributor 800, the block 2 includes marketplace servers 18 to sellerrepresentation/payment information 2 transaction information withregards to the seller's computing device 12 offering the EI for saleutilizing the MP servers 18, the block 3 includes buyer to marketplacepayment information 3 transaction information with regards to thebuyer's computing device 16 purchasing the EI via the MP servers 18 fromthe seller's computing device 12, and the block 4 includes buyer toretailer payment information 4 transaction information with regards tothe buyer's computing device 16 utilizing the EI to complete a desiredpurchase transaction with the retailer computing device 802.

FIG. 17C is another schematic block diagram of a transactionsblockchain. The transactions blockchain includes a plurality of blocks,where each block includes a secure exchange item package. Each secureexchange item package includes a header section and a transactionsection. The header section includes one or more of a nonce, a hash of apreceding block of the secure exchange item package, where the precedingblock was under control of a preceding device in a chain of control ofthe secure exchange item package, and a hash of a current block (e.g., acurrent transaction section) of the secure exchange item package, wherethe current block is under control of a current device in the chain ofcontrol of the secure exchange item package. The transaction sectionincludes one or more of a public key of the current device, a signatureof the preceding device, payment information regarding a change ofcontrol from the preceding device to the current device, and exchangeitem information that includes at least some of the identity of theexchange item, a brand of the exchange item, time restrictions of theexchange item, a digital image of the exchange item, the authenticatedvalue, and use restrictions of the exchange item.

FIG. 17C further includes user devices 2-3 (e.g., the seller's computingdevice 12, the MP servers 18, the buyer's computing device 16, theretailer computing device 802) to facilitate illustration of generationof the secure exchange item package. Each user device includes a hashfunction, a signature function, and storage for a public/private keypair generated by the user device

An example of operation of the generating of the secure exchange itempackage, when the user device 2 has control of the secure exchange itempackage and is passing control of the secure exchange item package tothe user device 3 (e.g., the user device 3 is transacting an exchangewith the user device 2), the user device 2 obtains the user 3 public keyfrom the user device 3, performs a hash function 2 over the user 3public key and the transaction 2 to produce a hashing resultant (e.g.,preceding transaction to user device 2) and performs a signaturefunction 2 over the hashing resultant utilizing a user 2 private key toproduce a user 2 signature. Having produced the user 2 signature, theuser device 2 generates the transaction 3 to include the user 3 publickey, the user 2 signature, user 3 payment to the user 2 information, andEI information 2-3. The user 3 payment to the user 2 informationincludes payment instructions from user 3 to user 2. The EI information2-3 includes an updated balance of the exchange item (e.g., after thetransaction between the user device 3 and the user device 2), a serialnumber of the exchange item, an expiration date of the exchange item, atype of the exchange item, a brand identifier, an image, a personalidentification number, and utilization rules for the exchange item.

Having produced the transaction 3 section of the block 3 (e.g., a secureexchange item package 3), a processing module (e.g., of the user device2, of the user device 3, of a transaction mining server, of themarketplace server 18) generates the header section by performing ahashing function over the transaction section 3 to produce a transaction3 hash, performing the hashing function over the preceding secureexchange item package (e.g., block 2) to produce a block 2 hash. Theperforming of the hashing function may include generating a nonce suchthat when performing the hashing function to include the nonce of theheader section, a desired characteristic of the resulting hash isachieved (e.g., a desired number of preceding zeros is produced in theresulting hash).

Having produced the secure exchange item package 3, the user device 2sends the secure exchange item package 3 to the user device 3. Havingreceived the secure exchange item package 3, the user device 3 validatesthe received secure exchange item package 3. The validating includes oneor more of verifying the user 2 signature over the preceding transactionsection (e.g., transaction 2) and the actual user 3 public key utilizingthe user 2 public key (e.g., a re-created signature function resultcompares favorably to user 2 signature) and verifying that an extracteduser 3 public key of the transaction 3 compares favorably to the user 3public key held by the user device 3. The user device 3 considers thereceived secure exchange item package 3 validated when the verificationsare favorable (e.g., the available balance of the exchange item istrusted).

FIG. 17D is a logic diagram of an embodiment of a method for generatinga transactions blockchain. In particular, a method is presented for usein conjunction with one or more functions and features described inconjunction with FIGS. 1-16, 17A-C, and also FIG. 17D. The methodincludes step 830 where a processing module of a computing device of oneor more computing devices of an exchange item marketplace networkauthenticates value of an exchange item to produce an authenticatedvalue of the exchange item, where the exchange item includes one of aclosed loop financial instrument and a digital good.

As an example of the authenticating the value of the exchange item, aseller device authenticates the value of the exchange item via acommunication with a brand server, generates a secure exchange itempackage, and securely passes, to the marketplace server, control overthe secure exchange item package such that the marketplace serverobtains the control over the secure exchange item package. The securelypassing includes updating a transaction section of the secure exchangeitem package by including a public key of a recipient device of thesecure exchange item package and signing the secure exchange itempackage by a transferring device of the secure exchange item package.The secure exchange item package includes a header section and atransaction section. As another example of the authenticating the valueof the exchange item, the marketplace server authenticates the value ofthe exchange item via a communication with the brand server, generatesthe secure exchange item package, and obtains control over the secureexchange item package as a result of being an originator of the secureexchange item package.

The method continues at step 832 where the marketplace server obtainscontrol over the secure exchange item package, where the secure exchangeitem package includes identity of the exchange item, identity of anauthenticated owner of the exchange item, identity of the marketplaceserver, and the authenticated value (e.g., face value of the exchangeitem and/or a remaining balance of the exchange item) of the exchangeitem and where only a device possessing control over the secure exchangeitem package may modify the secure exchange item package. As an exampleof the obtaining of the control, the marketplace server receives, fromthe seller device, a request to sell the exchange item and in responseto valid processing of the request to sell, the seller device securelypasses, to the marketplace server, control over the secure exchange itempackage.

The method continues at step 834 where the marketplace server receives,from a buyer device, a request to purchase the exchange item. Inresponse to valid processing of the request to purchase the exchangeitem, the method continues at step 836 where the marketplace serversecurely passes, to the buyer device, control over the secure exchangeitem package. For use of the exchange item, the method continues at step838 where the buyer device securely passes, to a merchant server,control over the secure exchange item package.

The method continues at step 840 where the margin server executes use ofthe exchange item by updating the value of the exchange item to producean updated value of the exchange item (e.g., deducting a purchase priceof a purchase transaction from the value of the exchange item to producethe updated value the exchange item). The method continues at step 842where the merchant server generates an updated secure exchange itempackage, where the updated secure exchange item package includesidentity of the exchange item, identity of the merchant server, identityof the buyer device, and the updated value of the exchange item. Themethod continues at step 844 where the merchant server securely passes,to the buyer device, control over the updated secure exchange itempackage.

Alternatively, or in addition to, for a second use of the exchange item,the buyer device securely passes, to a second merchant server, controlover the updated secure exchange item package. The second merchantserver executes the second use of the exchange item by updating theupdated value of the exchange item to produce a second updated value ofthe exchange item, generates a second updated secure exchange itempackage, where the second updated secure exchange item package includesidentity of the exchange item, identity of the second merchant server,identity of the buyer device, and the second updated value of theexchange item, and securely passing, to the buyer device, control overthe second updated secure exchange item package.

The method described above in conjunction with one or more of theprocessing module, the seller device, the marketplace server, the buyerdevice, the merchant server, the second merchant server, canalternatively be performed by other modules of the exchange itemmarketplace network or by other devices. In addition, at least onememory section (e.g., a non-transitory computer readable storage medium,a computer readable memory) that stores operational instructions can,when executed by one or more processing modules of one or more computingdevices of the exchange item marketplace network, cause the one or morecomputing devices to perform any or all of the method steps describedabove.

FIG. 17E is a logic diagram of another embodiment of a method forgenerating a transactions blockchain. In particular, a method ispresented for use in conjunction with one or more functions and featuresdescribed in conjunction with FIGS. 1-16, 17A-D, and also FIG. 17E. Themethod includes step 850 where a processing module of a computing device(e.g., of an exchange item origination entity) of one or more computingdevices of an exchange item marketplace network generates an originationblock of an EI transaction chain, where the EI origination entity signsa transaction portion of the origination block, and where thetransaction portion indicates EI information of an associated EI. Forexample, the origination entity generates value establishmentinformation in accordance with a trust approach (e.g., self-signing overthe value establishment information to produce the transaction portion,signing the value establishment information, that includes a public keyof a private/public key pair of the EI origination entity, utilizing theprivate key to produce the transaction portion).

When receiving an EI purchase request from a seller computing device,the method continues at step 852 where a processing module of an EIdistribution entity generates a first block of the EI transactionschain, where the EI distribution entity signs the transaction portion ofthe first block, where the transaction portion indicates that the sellercomputing device is purchasing the EI from the distribution entity, andwhere the first block is chained to the origination block in accordancewith a chained security approach (e.g., hash of transaction portion,hash of a previous block). The EI distribution entity may be implementedutilizing the EI origination entity. For example, the EI distributionentity signs the transaction portion utilizing a private key of aprivate/public key pair of the seller computing device to produce thetransaction portion of the first block.

When transacting a representation of the EI with a marketplace server,the method continues at step 854 where the seller computing devicegenerates a second block of the EI transactions chain, where the sellercomputing device signs a transaction portion of the second block, wherethe transaction portion indicates that the MP server is representing theEI for the seller computing device, and where the second block ischained to the first block in accordance with the chained securityapproach. For example, the MP server receives secured EI informationfrom the seller computing device (e.g., an offer for sale), providespricing information to the seller computing device, receives a confirmedprice from the seller computing device, issues secure sale informationto the seller computing device, and updates inventory information withina virtual exchange item marketplace, where the secure sale informationincludes the second block of the EI transactions chain and a public keyof the MP server.

When receiving a purchase request for the EI from a buyer computingdevice, the method continues at step 856 where the MP server generates athird block of the EI transactions chain, where the MP server signs atransaction portion of the third block, where the transaction portionindicates that the buyer computing device is purchasing the EI from theseller computing device via the marketplace, and where the third blockis chained to the second block in accordance with the chained securityapproach. For example, the buyer computing device issues an EI purchaserequest to the MP server based on received inventory information fromthe MP server, the MP server generates secure buyer wallet information,the buyer computing device stores a security EI record, where the securebuyer wallet information includes the third block of the EI transactionschain and the secure EI record includes the EI transactions chain. Forinstance, the MP server signs a public key of the buyer computing deviceand the transaction portion utilizing a private key of a private/publickey pair of the MP server to produce the transaction portion of thethird block.

When utilizing the EI for payment in a purchasing transaction with aretailer computing device, the method continues at step 858 where thebuyer computing device generates a fourth block of the EI transactionschain, where the buyer computing device signs a transaction portion ofthe fourth block, where the transaction portion indicates that the buyercomputing device is utilizing the EI for payment in the purchasingtransaction, and where the fourth block is chained to the third block inaccordance with the chained security approach. For example, the buyercomputing device issues a transaction request to the retailer computingdevice, the retailer computing device exchanges secure balanceinformation with the buyer computing device (e.g., verifies the trust ofthe EI transactions chain, where the EI transactions chain indicates anavailable balance of the EI verifying that an available balance issufficient), the retailer computing device issues secure transactioncompletion information to the buyer computing device, where the securetransaction completion information includes the fourth block of the EItransactions chain. The buyer computing device signs the public key ofthe retailer computing device and the transaction portion to produce atransaction portion of the fourth block. Alternatively, or in additionto, each entity of the plurality of transactions may verify the EItransactions chain by verifying a stored public key matches to recoveredpublic keys when validating signatures over associated blocks.

The method described above in conjunction with the exchange itemorigination entity, the seller computing device, the buyer computingdevice, and the retailer computing device can alternatively be performedby other modules of the exchange item marketplace network or by otherdevices. In addition, at least one memory section (e.g., anon-transitory computer readable storage medium, a computer readablememory) that stores operational instructions can, when executed by oneor more processing modules of one or more computing devices of theexchange item marketplace network, cause the one or more computingdevices to perform any or all of the method steps described above.

FIG. 18A is a logic diagram of an embodiment of a method for utilizingan exchange item in an exchange item marketplace network. The methodincludes step 860 where a processing module (e.g., of a brand server, ofa marketplace server) creates one or more exchange items to be offeredfor sale through the exchange item marketplace network. The methodcontinues at step 862 where an initial owner acquires at least one ofthe EIs. The method continues at step 864 where a processing module ofthe exchange item marketplace network establishes initial conditions.Conditions includes types of conditions and values for the types ofconditions. For example, a weather condition is associated with a valueof a current temperature. As another example, a sports team score isassociated with a particular game outcome. Other examples of conditiontypes include stock prices, world events, purchase history of usersassociated with the exchange item marketplace, pricing historyassociated with exchange items, a physical location, a customer name, amerchant name, a brand-name, a date, a time, etc.

The establishing of the conditions includes utilizing thepredetermination, interpreting the lookup, interpreting a queryresponse, receiving the conditions, identifying the conditions based onor more of identification of the initial owner, identification of thebrand of the EI, an EI type indicator, and EI serial number, and an EIutilization rule, etc. For example, the marketplace server performs alookup based on a serial number of the exchange item to establish theinitial conditions.

The method continues at step 866 where the processing module determineswhether the EI has been used (e.g., redeemed, utilized for making apurchase, bartered, etc.). The determining includes interpreting astatus associated with the EI of an exchange item database, interpretinga received a use message, receiving purchase transaction information,etc. the method branches to step 874 when the processing moduledetermines that the EI has not been used. The method continues to step868 when the processing module determines that the EI has been used.

When the EI has been used, the method continues at step 868 where theprocessing module processes the EI use. The processing includes one ormore of facilitating completion of a purchase transaction, facilitatingpayment distribution, and updating the exchange item database toindicate the use. The method continues at step 870 where the processingmodule determines whether the EI is exhausted (e.g., no value left). Thedetermining includes comparing a balance value associated with the EI toa minimum threshold level (e.g., zero dollars). For example, theprocessing module indicates that the EI has been exhausted when thebalance value is zero. The method looks back to step 866 when the EI isnot exhausted. The method continues to step 872 when the EI is exhaustedwhere the EI is retired. Alternatively, and in accordance with a ruleassociated with exchange item, the processing module maintains the zerobalance exchange item without retiring the exchange item (e.g., to keepopen an opportunity to refresh the exchange item). The retiring includesthe processing module updating the exchange item database to indicatethat the EI has been exhausted and retired from use.

When the EI has not been utilized, the method continues at step 874 witha processing module determines whether the EI is to be offered for sale.The determining includes receiving a request to offer the EI for sale,interpreting a rule with regards to sale, interpreting a statusassociated with the EI, and receiving a purchase request for the EI. Themethod branches to step 878 when the EI is not to be offered for sale.The method continues to step 876 when the EI is to be offered for salewhere the processing module posts the EI in the marketplace. Forexample, the processing module updates the exchange item database toindicate that the EI is for sale.

The mother continues at step 878 where the processing module determineswhether the EI has been sold. The determining includes one or more ofreceiving purchase transaction information, interpreting a request forpurchase of the EI, and interpreting a status associated with the EI inthe exchange item database. The method branches to step 882 when the EIhas not been sold. The method continues to step 880 when the EI has beensold where the processing module processes the sale and updatesinformation. For example, the processing module updates the exchangeitem database to indicate that the EI has been sold, the purchaseamount, and identification of the (new) owner.

The method continues at step 882 where the processing module updates theconditions. For example, the processing module obtains updated date andtime information, sports scores, stock market information, world eventsinformation, and weather information. With the conditions updated,utilization and sale of other exchange items may be affected asdifferent use rules associated with the different exchange items mayunable shifts in parameters associated with exchange items. For example,an additional discount for a particular branded exchange item may beenabled when a temperature value of a temperature condition is less thana low threshold value. As another example, a balance of another exchangeitem may be increased by 10% for a two-hour time frame when a localbaseball team wins a game and the exchange item is associated with abrand of the local baseball team. Having updated the conditions, themethod loops back to step 866

FIG. 18B is a logic diagram family of an embodiment of a method forutilizing rules in an exchange item (EI) marketplace network. A rule isassociated with utilization of an exchange item. The rule may be imposedby one or more of an issuing brand, a merchant, an alternative brand,and by a marketplace server of the exchange item marketplace. A rulespecifies allowable values or ranges of values of parameters associatedwith an exchange item is a function of one or more conditions and of oneor more use options. Rules be imposed independently (e.g., alone withoutany interaction with other rules), in series (e.g., first rule invokedfollowed by a second rule invoked), in parallel (e.g., operating two ormore rules together, and may interact where a first rule status may beutilized by a second rule), or in a nested fashion (e.g., where a ruleis triggered when a value associated with a preceding rule comparesfavorably to a trigger threshold level). Each EI rule is associated witha rule lifecycle, which includes creation of the EI rule, and mayinclude invoking of the EI rule and updating of the EI rule and/or of anassociated EI of the EI rule (e.g., updating a marketplace serverdatabase).

A method associated with the creation of the EI rule includes step 890where a processing module (e.g., by a brand server, by a marketplaceserver) determines whether an exchange item (EI) rule has been invoked.The determining may be based on one or more of interpreting values ofconditions in accordance with the EI rule, receiving a messageindicating that the rule has been invoked, and detecting an activityassociated with the invoking of the rule. The method branches to steps892 and 894 when the EI rule has been invoked. The method branches tostep 902 when the EI rule has not been invoked where the processingmodule determines whether the EI rule has changed. The determining maybe based on one or more of interpreting a change flag, receiving achange message, observing activity associated with a change of the rule,and comparing a previous EI rule to the EI rule. The method continues tostep 904 when the EI rule has not been changed where the processingmodule determines whether the EI rule has expired (e.g., detecting thatan active timeframe associated with the EI rule has elapsed). The methodloops back to step 890 when the EI rule has not expired.

When the EI rule has been invoked, the method continues at step 892where the processing module notifies a current owner of the invoked EIrule (e.g., issuing a message to a brand server that established (i.e.,owner) the rule) and the method continues at step 894 where theprocessing module updates the EI based on the invoked EI rule. Theupdating includes modifying a record of the EI in the marketplace serverdatabase immediately or upon receiving a permissions grant from theowner, modifying the record of the EI in the marketplace serverdatabase.

The method continues at step 896 where the processing module determineswhether the EI rule has been revoked. The determining may be based onone or more of interpreting updated conditions associated with the EIrule and indicating that the EI rule has been revoked and receiving amessage indicating that the EI rule has been revoked (e.g., from a brandserver). The method loops back to step 890 when the EI rule has not beenrevoked. The method continues to steps 898 and 900 when the EI rule hasbeen revoked. The method continues at step 898 where the processingmodule notifies the current owner of the revoked EI rule (e.g., issuingan EI revoked message) and updates the associated EI based on therevoked EI rule (e.g., updates the marketplace server database).

A method associated with the invoking of the EI rule includes step 906where the processing module tracks conditions for exchange items of arule set. For example, the processing module receives conditions dataassociated with a plurality of conditions types and maps the conditionsdata a plurality of exchange items associated with rules that rely onthe conditions to activate a course of action. The method continues atstep 908 where the processing module, per exchange item, determines whena condition conforms to a rule to invoke the rule. For example, theprocessing module indicates to invoke the rule when a condition of therule meets a threshold level.

A method associated with the updating of the EI rule includes step 910where the marketplace server takes control of the exchange item. Thetaking of control includes invoking a rule that includes grantingupdating authority for the marketplace server. With the authority toupdate the exchange item in the marketplace server database, themarketplace server may modify a rule, add a rule, delete a rule, addconditions associated with a rule, delete conditions associated with arule, and modify conditions associated with a rule.

The method continues at step 912 where the marketplace server updatesthe exchange item. For example, the marketplace server recovers aportion (e.g., a single transaction blockchain including a ledger of allexchange items) of the marketplace server database and modifies therecovered portion (e.g., modifies the blockchain) to produce an updatedportion of the marketplace server database. The method continues at step914 where the marketplace server signs the updated exchange item. Forexample, the marketplace server utilizes a private key of apublic/private key pair of the marketplace server to electronically signthe updated exchange item to produce a signature of the marketplaceserver. The method continues at step 916 where the marketplace serverreturns control of the signed updated exchange item. For example, themarketplace server stores the signed updated exchange item into themarketplace or database and pushes the signed updated exchange item toone or more entities of the exchange item marketplace network. Forinstance, the marketplace server sends the signed updated exchange itemto a computing device associated with purchase of the exchange item. Asanother instance, the marketplace server sends the signed updatedexchange item to a brand server associated with the exchange item. Sucha signed updated exchange item is illustrated where exchange item serialnumber 5, that is associated with owner AA, includes conditions e3, f6,p5 that is associated with the exchange item 5, and that now follows arule set 4.

FIG. 18C is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the network 24 of FIG.2, an exchange item (EI) issuing server 920, and EI trusted module 922,a merchant server 924, the marketplace database 20 of FIG. 2, themarketplace server 18 and FIG. 2, an EI buyer computing device 926, andan initial owner computing device 928. The EI issuing server 920 may beimplemented utilizing one or more of the brand server(s) 26 of FIG. 2,the processor server 28 of FIG. 2, and the distributor server 30 FIG. 2.The EI trusted module 922 may be implemented within one or more of theEI issuing server 920, the merchant server 924, and the marketplaceserver 18. The merchant server 924 may be implemented utilizing one ormore of the retail server 34 of FIG. 2 and the point-of-sale equipment32 of FIG. 2. The EI buyer computing device 926 may be implementedutilizing the buyer's computing device 16 of FIG. 6A. The initial ownercomputing device 928 may be implemented utilizing the seller's computingdevice 12 of FIG. 6A.

The marketplace database 20 includes a variety of databases, such as anagreement database 930, a user database 932, and an exchange itemdatabase 934. Each of the databases will be discussed in greater detailwith reference to following figures. The marketplace server 18 includesa variety of processing capability, which may be implemented as aplurality of processing modules. In an embodiment, the marketplaceserver 18 includes a set of processing 936, a sale processing 938, a useprocessing 940, and a rule processing 942. Each of the processingmodules will be discussed in greater detail with reference to followingfigures.

The EI buyer computing device 926 includes a digital wallet 944 and theinitial owner computing device 928 includes another digital wallet 946.Each of the digital wallets 944-946 is utilized to store a variety ofinformation associated with one or more exchange items, such as balanceinformation, pricing information, history of sale, brand affiliation,rules, conditions, use options, owner information, and securityinformation to ensure trust of the content of the digital wallet.

FIG. 18D is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the initial ownercomputing device 928 of FIG. 18C, the EI issuing server 920 of FIG. 18C,the EI trusted module 922 of FIG. 18C, the marketplace server 18 of FIG.18C, and the marketplace database 20 of FIG. 18C. Entities of theexchange item marketplace network may be operably coupled through thenetwork 24 of FIG. 18C or may be directly connected to each other. Theexchange item marketplace functions to establish agreements and set upexchange items. Such agreements include terms for one or more ofcreation of exchange items (EI), creation of EI rules for the exchangeitems, identification of condition types and condition values to beutilized in conjunction with the EI rules, and facilitating payment forsale and/or utilization of an exchange item. The agreements may involvetwo or more parties, such as a brand, a merchant, and an alternativebrand. For example, an agreement between a brand and a merchantassociated with the brand indicates a discount range associated with aparticular exchange item. As another example, an agreement between abrand and the alternative brand indicates which products may bepurchased using an exchange item not associated with the product.Agreement information includes one or more agreement points of eachagreement (e.g., value, discount, balance, permissions, etc.).

In an example of operation of the establishing of the agreements andsetting up of the exchange items, the setup (i.e., or set up) processing936 of the marketplace server 18 establishes the agreement database 930.The establishing includes receiving agreement information and updatingthe agreement database 930 within the marketplace database 20. Forexample, the marketplace server 18 issues a query to one or more of theEI issuing server 920, another issuing server, a merchant server,another merchant server; and receives a query response. As anotherexample, the marketplace server 18 receives an unsolicited messageincluding the agreement information. Having received the agreementinformation, the marketplace server updates the agreement database 930.The agreement database 930 correlates issuer information, merchantinformation, and agreement information. For example, the agreementdatabase 930 associates issuer A_1 with a merchant A_1_n as bound by anagreement aa (e.g., including one or more agreement points).

Having established the agreements, the marketplace server 18 facilitatessetting up of the exchange items to include establishment of exchangeitem (EI) rules. An initiating entity establishes a first rule for a newexchange item. The initiating entity includes at least one of the EIissuing server 920 and the set of processing hundred and 36 of themarketplace server 18. The first rule is associated with establishmentof a security approach to ensure that and subsequent rules associatedwith the EI can be trusted by all marketplace participants as timeproceeds. For example, the EI issuing server 920 establishes trustinformation 954 to include a first contract block of a contractblockchain, where private/public key pairs are utilized to ensure trustas previously discussed with reference to FIGS. 17A-E. The firstcontract block establishes the EI issuing server 920 as the owner (e.g.,a root of the contract blockchain).

The initiating entity further establishes the new exchange item. Forexample, the EI issuing server 920 establishes EI information 950 (e.g.,value, type, issuance date, expiration date, use parameters, etc.). Theinitiating entity further establishes content of the first rule, andfurther content of other rules as an EI rule set 952. For example, theEI issuing server 920 utilizes a 4^(th) set of EI rules and an EI ofserial number 5 for issuer B_K (e.g., identity of the EI issuing server920) to include EI 05 info. The E1005 is to be for sale and is bound bya fourth set of EI rules which are associated with conditions e3, f6, p5in accordance with use options of the issuer B_K. Having obtained the EIinformation 950 and the EI rule set 952, the set up processing 936verifies the received EI information and set by exchanging set upverification 956 with the EI trusted module 922. For example, the EItrusted module 922 verifies the contract blockchain and sends anindication of a status of the verification to the marketplace server 18.

When the EI information 950 in the EI rule set 952 have been verified,set of processing 936 updates the exchange item database 934 of themarketplace database 20 with the EI information 950 in the EI rule set952. For instance, the setup processing 936 establishes the role of theexchange item database 934 associated with the EI serial number 005. Theset of processing 936 may further update the user database 932 toinclude a list of known users of the marketplace, a history of EIbuying, selling, and using. For example, the set of processing 936updates the user database 932 when the initial owner computing device928 (e.g., owner AA) purchases the new EI by exchanging set upinformation 958 with the marketplace server 18. The initial ownercomputing device 928 updates a digital wallet 946 of the initial ownercomputing device 928 with an owner table. The owner table includes oneor more of a list of EI serial numbers, and for each EI, an identifierof an issuer, associated EI information, use options, EI rulesassociated with the EI, and conditions associated with the EI.Alternatively, or in addition to, the marketplace server maintains acopy of the owner table in the marketplace database 20.

FIG. 18E is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the initial ownercomputing device 928 of FIG. 18C, the EI buyer computing device 926 ofFIG. 18C, the EI trusted module 922 of FIG. 18C, the marketplace server18 of FIG. 18C, and the marketplace database 20 of FIG. 18C. Theexchange item marketplace functions to process a sale of an exchangeitem (EI) from the initial owner computing device 928 to the EI buyercomputing device 926.

In an example of operation of the processing of the sale of the EIserial number 005 by the initial owner computing device 928 (e.g., ownerAA) the EI buyer computing device 926 (e.g., owner DZ), the saleprocessing 938 of the marketplace server 18 exchanges sale information966 with the initial owner computing device 928, where the saleinformation 966 includes one or more of the EI serial number 005, a saleprice, use options, a commission amount (e.g., to the marketplace), andcredit information (e.g., a 05 credit of generic value usable in themarketplace to purchase another EI or to be converted into another formof payment). The initial owner computing device 928 updates the digitalwallet 946 to indicate that the EI serial number 005 has been sold andthat the 05 credit is available.

The sale processing 938 further exchanges sale verification 968 with theEI trusted module 922. For example, the EI trusted module 922 verifiesthe contract blockchain and a transaction blockchain associated with theEI to ensure that the sale is within sale allowance parametersassociated with the EI as imposed by one or more of an agreement, and EIrule, conditions, and use options. When verified, the EI trusted module922 issues the sale verification 968 to the sale processing 938indicating that the sale is verified.

The sale processing 938 further exchanges purchase information 970 withthe EI buyer computing device 926, such that the EI buyer computingdevice 926 updates the digital wallet 944 indicating that owner DZ hasthe EI serial number 005. Having processed the sale of the EI 005, thesale processing 938 updates the marketplace database 20 indicating thatthe EI serial 005 is now associated with owner DZ and is not currentlyfor sale.

FIG. 18F is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the EI buyer computingdevice 926 of FIG. 18C, the EI trusted module 922 of FIG. 18C, themerchant server 924 FIG. 18C, the marketplace server 18 of FIG. 18C, andthe marketplace database 20 of FIG. 18C. The exchange item marketplacefunctions to process use of an exchange item (EI) by the EI buyercomputing device 926 with the merchant server 924.

In an example of operation of the use of the EI, the EI buyer computingdevice 926 obtains EI info from the digital wallet 944 to issue buyeruse information 976 to the marketplace server 18 when desiring toutilize the exchange item (e.g., EI serial number 005) with a merchantassociated with the merchant server 924 for purchase of goods and/orservices. When receiving the buyer use information 976, the useprocessing 940 of the marketplace server 18 verifies the use byexchanging use verification 978 with the EI trusted module 922. The useverification 978 includes one or more of the buyer use information 976and an associated row of the exchange item database 934 associated withthe exchange item (e.g., the row associated with the exchange itemserial number 005). For example, the EI trusted module 922 verifies thatthe use of the EI compares favorably with the associated rules,conditions, and use options.

When receiving favorable use verification 978, the use processing 940exchanges merchant use information 980 with the merchant server 924 tocomplete the use of exchange item. Alternatively, the marketplace server18 receives the merchant use information 980 from the merchant server924 via the EI buyer computing device 926 as part of the buyer useinformation 976 (e.g., a secure blockchain element is generated by themerchant server 924 and communicated directly to the EI buyer computingdevice 924).

The merchant use information 980 includes one or more of the buyer useinformation 976, the use verification 978, and any additionalinformation to complete the use of the EI. Upon completion of the use ofthe EI, the use processing 940 updates the exchange item database 934indicating that the EI has been utilized (e.g., indicating an amount ofan outstanding balance utilized and a remaining available balance etc.).Alternatively, or in addition to, the use processing 940 performs amerchant verification process in accordance with a rule associated withthe exchange item. For example, the use processing 940 extracts securityinformation from the merchant use information 980, exchanges useinformation 978 with the EI trusted module 922, and interprets a useverification 978 response from the EI trusted module 922 to determinewhether the merchant server 924 is verified (e.g., non-fraudulent). TheEI trusted module 922 may verify the merchant server 924 by a variety ofapproaches including accessing a database of fraudulent merchants,invoking a rule of an associated exchange item to test a pluralityparameters associated with the merchant use information 980, andrequesting that the merchant server 924 electronically sign a message toverify that the merchant server 924 holds a correct private keyassociated with a previously verified merchant server 924.

FIG. 18G is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the EI buyer computingdevice 926 of FIG. 18C, the EI issuing server 920, the EI trusted module922 of FIG. 18C, the marketplace server 18 of FIG. 18C, and themarketplace database 20 of FIG. 18C. The exchange item marketplacefunctions to process rules associated with an exchange item (EI).

In an example of operation of the processing of the rules, the ruleprocessing 942 of the marketplace server 18 records conditions for aplurality exchange items. A condition of the conditions for theplurality of exchange items further includes one of a range of time, arange of dates, a geographic location, a building address, a list ofitems, a user tendency profile, and a user loyalty profile. For example,the marketplace server 18 obtains the condition from a correspondingcondition source.

For an exchange item of the plurality of exchange items, where theexchange item has a quantifiable value (e.g., valid tender, offeredsomething formally in writing, offered a sum for a settlement, same asmoney, offer made to settle something), a serial number, and a currentowner, the rule processing 942 determines whether a correspondingcondition of the exchange item is compliant with one or more rules of anapplicable set of rules (e.g., a contract regarding the exchange itemfrom the issuer, where a set of rules is utilized for each EI, or for agroup of EIs, for each owner, by brand, by retailer, etc.). Thedetermining includes utilizing a sliding scale of compliance (e.g.,conditional chaining) based on one or more of a user profile, exchangeitem information, an exchange item issuer, limited exchange item use,and timing of use. For example, the rule processing 942 obtainsinformation with regards to conditions and EI rules from the exchangeitem database 934 and interprets conditions data in accordance with theEI rules to determine the compliance. For example, the rule processing942 indicates that a weather rule is compliant when a temperaturecondition indicates a temperature value that is greater than atemperature threshold value associated with the weather rule.

The rule processing 942 may verify the compliance with the EI rule byobtaining issuer rule information 986 from the EI issuing server 920associated with the EI and by further verifying compliance by exchangingrule verification 990 with the EI trusted module 922. The verifying ofcompliance further includes verifying a security scheme (e.g., contractblockchain or the EI rules) and by checking that the EI rule comparesfavorably to the issuer rule information 986 from the EI issuing server920.

The rule processing 942 may update the applicable set of rules based onone or more of a rule changing, a rule expiring, and a new rule beingadded to the set. For example, the rule processing 942 updates theexchange item database 934 and sends owner rule info 988 to the EI buyercomputing device 926 to indicate an EI rule change associated with aparticular EI when current conditions and a previous rule indicatechanging the rule when the conditions are compliant.

The rule processing 942 may further determine a specific use as the oneor more rules of the applicable rule set (e.g., for a specific product,a specific store, etc.). For example, the rule processing 942 identifiesraising a discount level for the exchange item in accordance with the EIrule as the specific use in accordance with the EI rule and favorableconditions to alter the discount level. Alternatively, or in additionto, the rule processing 942 determines a specific time frame as the oneor more rules of the applicable rule set (e.g., for a set period oftime, a day, etc.). For example, the rule processing 942 identifies atwo-hour time window for the raised discount level for the exchange itemin accordance with the one or more rules.

When the corresponding condition of the exchange item is compliant withthe one or more rules, the rule processing 942 establishes a securecommunication with a computing device affiliated with a current owner(e.g., of the exchange item and/or of the contract blockchain) to takecontrol of the exchange item (e.g., to update an exchange item record ofthe exchange item). Having control includes holding a private keyassociated with modifying a blockchain associated with the exchangeitem. For example, the rule processing 942 exchanges a secure owner ruleinformation 988 with the EI buyer computing device 926 associated withan exchange item serial number 005, where the rule processing 942, inaccordance with a security rule, is allowed to modify the contractblockchain with regards to the EI rules.

While having control over the exchange item, the rule processing 942securely modifies the quantifiable value of the exchange item based onthe one or more rules to produce a modified exchange item. For example,the rule processing 942 adds another contract block to the contractblockchain, where the additional contract block includes a modifiedexchange item as modified exchange item info serial number 005. Themodifying of the quantifiable value includes increasing the quantifiablevalue for the specific use when the specific use is utilized as the oneor more rules of the applicable rule set and securely modifying thequantifiable value of the exchange item in accordance with theblockchain protocol.

Having modified the quantifiable value of the modified exchange item,the rule processing 942 sends a notification message (e.g., owner ruleinformation 988) to the computing device (e.g., the EI buyer computingdevice 926) regarding the increased quantifiable value and the specificuse. Having received the notification message, the EI buyer computingdevice 926 stores the (modified) exchange item in accordance with theblockchain protocol (e.g., stores the contract blockchain including thenew contract block in the digital wallet 944).

The modifying of the quantifiable value may further include increasingthe quantifiable value for use during the specific time frame when thespecific time frame is utilized as the one or more rules of theapplicable rule set (e.g., an increase discount level for the next twohours). Having modified the quantifiable value, the rule processing 942sends another notification message to the computing device regarding theincreased quantifiable value and the specific time frame.

While having control over the exchange item, the rule processing 942further prevents the computing device or another computing device fromaccessing the exchange item. For example, the rule processing 942 issuesowner rule information 988 to the EI buyer computing device 926indicating that the exchange item is not to be utilized while beingmodified. Alternatively, or in addition to, the rule processing 942updates the exchange item database 934 indicating that the exchange itemis not to be accessed while being modified. When completing themodification, the rule processing 942 releases, via the securecommunication, control of the modified exchange item to the computingdevice affiliated with the current owner. For example, the ruleprocessing 942 issues yet another owner rule information 988 to the EIbuyer computing device 926 indicating that the exchange item has beenupdated and released.

With the exchange item updated, and when the specific time frame expires(e.g., when utilized) and the modified exchange item is unused (e.g.,the EI buyer computing device 926 has not used the modified exchangeitem at all), the rule processing 942 facilitates reverting of theexchange item. The reverting of the exchange item includes one or moreof establishing another secure communication with the computing deviceaffiliated with exchange item to take control of the modified exchangeitem and while having control over the modified exchange item,decreasing the increased quantifiable value to the quantifiable value toproduce a reverted exchange item, preventing the computing device oranother computing device from accessing the exchange item, releasing,via the other secure communication, control of the reverted exchangeitem to the computing device affiliated with the current owner, andsending another notification message to the computing device regardingthe reverted exchange item.

Alternatively, when the specific time frame expires, and the modifiedexchange item was used but did not exhaust the quantifiable value, therule processing 942 facilitates producing a further modified EI. Thefacilitating to produce the further modified EI includes one or more ofidentifying another rule of the applicable set of rules to furthermodify the modified exchange item, establishing another securecommunication with the computing device affiliated to take control ofthe modified exchange item, and while having control over the modifiedexchange item, the rule processing 942 increases a remainingquantifiable value to produce a further modified exchange item, preventsthe computing device or another computing device from accessing to themodified exchange item, releases, via the other secure communication,control of the further modified exchange item to the computing deviceaffiliated with the current owner, and sends another notificationmessage to the computing device regarding the further modified exchangeitem.

With the modified exchange item, the EI buyer computing device 926 mayutilize the modified exchange item in conjunction with a purchasetransaction from a merchant. For example, the EI buyer computing device926 sends a use request to another server (e.g., a merchant server)regarding the modified exchange item (e.g., to utilize the modified EIfor the purchase transaction). Having received the use request, theother server sends a use notification to the marketplace server 18.Having received the use notification, the rule processing 942 of themarket place over 18 establishes a second secure communication with thecomputing device affiliated with the current owner to take control ofthe modified exchange item (e.g., exchanges owner rule information 988with the EI buyer computing device 926).

While having control over the exchange item, the marketplace server 18securely adjusts the quantifiable value of the exchange item based onthe use notification to produce an adjusted exchange item (e.g.,decrements a remaining balance by an amount of the purchase transactionand updates one or more of a transaction blockchain and the contractblockchain) and prevents the computing device, the other server, orother computing devices from accessing the exchange item. Once modified,the marketplace server 18 releases, via the second secure communication,control of the adjusted exchange item to the computing device affiliatedwith the current owner.

FIG. 18H is a diagram of an exchange item (EI) database 934 thatincludes a variety of fields. The variety of fields includes an EIserial number, and issuer, and owner, EI information, conditions, EIrules, offer for sale, use options, blockchain control, and blockchainlocation when a blockchain approach is utilized as a security mechanismfor entities trading in the EI to verify attributes associated with theEI. For example, a transaction blockchain is associated withtransactions from birth of the EI to complete utilization/retirement ofthe EI and a contract blockchain associated with EI rule changes as timeprogresses. A structure of the transaction blockchain and the contractblockchain is discussed in greater detail with reference to FIG. 18J.

To ensure favorable security, a controlling entity desiring to modifythe blockchain must be associated with control of the blockchain asindicated by the blockchain control field of the exchange item database934. The controlling entity may change from one entity to another duringthe EI lifecycle and may further be constrained as indicated by the EIrules. For example, a particular blockchain may be controlled by the EIissuer in the beginning and later controlled by the marketplace serverin accordance with the EI rules established by the EI issuer. As anotherexample, the blockchain may be controlled by the merchant server toupdate rules and conditions to support a particular promotion as allowedby the original and current EI rules.

A most recent revision of a particular blockchain may be temporarilystored in one or more entities of the exchange item marketplace asindicated by the blockchain location field. As such, the controllingentity may utilize the exchange item database 934 to identify the entitywhere the blockchain is temporarily stored to gain access to theblockchain for modification in accordance with the rules and conditions.

FIG. 18J is another schematic block diagram of a transactions blockchainthat includes a series of transaction blocks. Each transaction blockincludes a security bridge from a last block to this block (e.g., hashover previous block and a previous nonce, and a hash over a currentblock and a current nonce), transaction information, a signature by acurrent seller over the transaction info, and a contract blockchain. Thetransaction information includes a next purchaser public key (e.g., apublic key of a public/private key pair of the next purchaser associatedwith a next transaction), payment information, and EI information. Thepayment information includes payment information (e.g., payment amount,payment source, etc.) from the next purchaser to the current sellerassociated with the current block. The signature is created by thecurrent seller signing the transaction information utilizing the privatekey of a public/private key pair of the current seller.

The contract blockchain includes one or more contract blocksrepresenting changes to rules and/or conditions of the EI of the EIinformation. For example, the contract blockchain includes a completecontract blockchain for substantially all of the rules and/or conditionschanges. As another example, the contract blockchain includes at leastone contract block associated with the transaction block. Alternatively,or in addition to, the contract blockchain is maintained separately andis not included within the transaction block. Further alternatively, asingle combined transaction and contract block chain is maintained asone entity.

Each contract block includes a security bridge from a last block to thisblock, a contract package (from a last contract block to this contractblock), and a signature by a current rules owner over the contractpackage. Each contract package includes at least one next owner publickey (e.g., associated with an exchange item marketplace entity expectedto be a next owner of the contract blockchain), and contractinformation. The contract information includes one or more of EI rules,conditions, use options, EI information, agreements, merchantidentifiers, issuer identifier, EI serial number, owner identifier, anoffer for sale indicator, etc. The signature over the contract packagescreated by a current owner of the contract blockchain signing thecontract package utilizing a private key of a public/private key pairassociated with the current owner of the contract blockchain. The ormore blockchains may be verified from time to time utilizingindustry-standard mining approaches and are applicable to both proof ofwork, proof of stake, and other hybrid mining techniques.

FIG. 18K is a logic diagram of an embodiment of a method for modifyingan exchange item in an exchange item marketplace network. In particular,a method is presented for use in conjunction with one or more functionsand features described in conjunction with FIGS. 1-17E, 18A-J, and alsoFIG. 18K. The method includes step 1000 where a processing module of aserver (e.g., a marketplace server of a communication system) recordsconditions for a plurality of exchange items. For an exchange item ofthe plurality of exchange items, where the exchange item has aquantifiable value, a serial number, and a current owner, the methodcontinues at step 1002 where the processing module determines whether acorresponding condition of the exchange item is compliant with one ormore rules of an applicable set of rules. The determining may includedetermining a specific use as the one or more rules of the applicablerule set. The determining may further include determining a specifictime frame as the one or more rules of the applicable rule set. Thedetermining may yet further include utilizing a sliding scale ofcompliance based on one or more of a user profile, an exchange iteminformation, exchange item issuer, limited exchange item use, and timingof use. The determining may still further include updating theapplicable set of rules based on one or more of a rule changing, a ruleexpiring, and a new rule being added to the set. For example, updatingthe rules and utilizing the updated rules for a compliancedetermination.

When the corresponding condition of the exchange item is compliant withthe one or more rules, the method continues at step 1004 where theprocessing module establishes a secure communication with a computingdevice affiliated with the current owner to take control of the exchangeitem. For example, the processing module accesses a contract blockchaincurrently possessed by the computing device.

While having control over the exchange item, the method continues atstep 1006 where the processing module securely modifies the quantifiablevalue of the exchange item based on the one or more rules to produce amodified exchange item. The modifying may include modifying thequantifiable value by increasing the quantifiable value for the specificuse when the specific use is utilized as the one or more rules of theapplicable rule set and securely modifying the quantifiable value of theexchange item in accordance with a blockchain protocol (e.g., of thecontract blockchain). The modifying may further include sending anotification message to the computing device regarding the increasedquantifiable value and the specific use and storing, by the computingdevice, the exchange item in accordance with the blockchain protocol.The modifying of the quantifiable value may further include increasingthe quantifiable value for use during the specific time frame (e.g., anincreased discount for the next two hours) when the specific time frameis utilized as the one or more rules of the applicable rule set andsending a notification message to the computing device regarding theincreased quantifiable value and the specific time frame. While havingcontrol over the exchange item, the processing module prevents thecomputing device or another computing device from accessing the exchangeitem (e.g., marking the modified exchange item as not accessible).

The method continues at step 1008 where the processing module releases,via the secure communication, control of the modified exchange item tothe computing device affiliated with the current owner. For example, theprocessing module marks the modified exchange item as accessibleenabling use of the modified exchange item by the computing device(e.g., to make a purchase transaction). When the specific time frameexpires (e.g., two hours has elapsed), and the modified exchange itemwas used but did not exhaust the quantifiable value, the method branchesto step 1012. When the specific time frame expires and the modifiedexchange item is unused, the method continues to step 1010.

When the specific time frame expires and the modified exchange item isunused, the method continues at step 1010 where the processing modulefacilitates producing a reverted EI. The facilitating includesestablishing another secure communication with the computing deviceaffiliated to take control of the modified exchange item. While havingcontrol over the modified exchange item, the processing module decreasesthe increased quantifiable value to the quantifiable value to produce areverted exchange item, prevents the computing device or anothercomputing device from accessing the exchange item, releases, via theother secure communication, control of the reverted exchange item to thecomputing device affiliated with the current owner, and sends anothernotification message to the computing device regarding the revertedexchange item. The method branches to step 1014.

When the specific time frame expires, and the modified exchange item wasused but did not exhaust the quantifiable value, the method continues atstep 1012 where the processing module facilitates producing a furthermodified EI. The facilitating of producing the further modified EIincludes identifying another rule of the applicable set of rules tofurther modify the modified exchange item and establishing anothersecure communication with the computing device affiliated to takecontrol of the modified exchange item. While having control over themodified exchange item, the processing module increases a remainingquantifiable value to produce a further modified exchange item, preventsthe computing device or another computing device from accessing to themodified exchange item, releases, via the other secure communication,control of the further modified exchange item to the computing deviceaffiliated with the current owner, and sends another notificationmessage to the computing device regarding the further modified exchangeitem.

The method continues at 1014 where the computing device sends a userequest to another server regarding the modified exchange item (e.g., toutilize the modified exchange item for a purchase transaction). Themethod continues at step 1016 where the other server sends a usenotification to the other server (e.g., including information withregards to the purchase transaction). The method continues at step 1018where the processing module of the server establishes a second securecommunication with the computing device affiliated with the currentowner to take control of the modified exchange item.

While having control over the exchange item, the method continues atstep 1020 where the processing module of the server securely adjusts thequantifiable value of the exchange item based on the use notification toproduce an adjusted exchange item (e.g., decrements a remaining balanceby an amount of the purchase transaction). The adjusting may furtherinclude preventing the computing device, the other server, or othercomputing devices from accessing the exchange item during the adjusting.The method continues at step 1022 where the processing module of theserver, and via the second secure communication, releases control of theadjusted exchange item to the computing device affiliated with thecurrent owner.

The method described above in conjunction with the processing canalternatively be performed by other modules of the exchange itemmarketplace network or by other devices. In addition, at least onememory section (e.g., a computer readable memory, a non-transitorycomputer readable storage medium organized into a first memory section,a second memory section, a third memory section, a fourth memorysection, etc.) that stores operational instructions can, when executedby one or more processing modules of one or more computing devices(e.g., one or more servers) of the exchange item marketplace network,cause the one or more computing devices to perform any or all of themethod steps described above.

FIG. 18L is a schematic block diagram of another embodiment of anexchange item marketplace network (e.g., a data communication system)that includes the initial owner computing device 928 FIG. 18C, theexchange item (EI) issuing server 920 of FIG. 18C, the EI trusted module922 of FIG. 18C, the merchant server 924 of FIG. 18C, marketplace server18 FIG. 18C, the marketplace database 20 of FIG. 18C, and the EI buyercomputing device 926 FIG. 18C. Entities of the exchange item marketplacenetwork may be operably coupled to each other via the network 24 of FIG.18C or may be directly coupled. The initial owner computing device 928includes the digital wallet 946 of FIG. 18C and the EI buyer computingdevice 926 includes the digital wallet 944 of FIG. 18C. The marketplaceserver 18 includes the set up processing 936, the sale processing 938,the use processing 940, and the rule processing 942 all of FIG. 18C. Theexchange item marketplace network functions to transfer secure custodyof an exchange item between entities in accordance with a secure custodyprotocol. The secure custody protocol includes utilizing one or more ofa contract blockchain and a transaction blockchain as previouslydiscussed.

In an example of operation of the transferring the secure custody of theexchange item between entities, the marketplace server 18 (e.g., theserver) establishes an initial validity of the exchange item thatincludes data regarding a quantifiable value, a serial number, andissuance information, where the initial validity authenticates theexchange item and the data. The issuance information includes one ormore of issuer identity, and issuance date, and expiration time frame,EI rules, and use parameters. The establishing may include receiving aplurality of exchange items from the EI issuing server 920, where theplurality of exchange items includes the exchange item, and establishingthe initial validity of the exchange item with the EI issuing server920. For example, the set up processing 936 receives EI information 950and an EI rule set 952 from the EI issuing server 920, where the EIissuing server 920 issues trust information 954 (e.g., a first contractblock of the contract blockchain) to the EI trusted module 922 whilegenerating the EI information 950 and the EI rule set 952. Havingreceived the EI information 950 and the EI rule set 952, the set upprocessing 936 exchanges set up verification 956 with the EI trustedmodule 922 to validate the EI information 950 and the EI rule set 952.

Having established the initial validity of the exchange item, themarketplace server 18 executes a secure custody protocol to establishthat the initial owner computing device 928 (e.g., a first computingdevice) of the exchange item marketplace network (e.g., datacommunication system) has secure custody of the exchange item and tomaintain validity of the exchange item. The secure custody protocol mayfurther include one or more of a chain of custody mechanism (e.g., theblockchains), exchange item modification restrictions for computingdevices of the data communication system (e.g., the initial ownercomputing device 928, the EI buyer computing device 926, the merchantserver 924), and exchange item modification rights for servers of thedata communication system. For example, the sale processing 938exchanges set up information 958 with the initial owner computing device928 (e.g., a request to purchase the exchange item, confirmation ofsale, the EI info 950, one or more of the transaction blockchain and thecontract blockchain).

Having executed the secure custody protocol, in response to an exchangeitem transfer and in accordance with the secure custody protocol, themarketplace server 18 facilitates transfer of the secure custody of theexchange item from the first computing device (e.g., the initial ownercomputing device 928) to the server or to a second computing device(e.g., the EI buyer computing device 926) of the data communicationsystem. Such transfer supports one or more of a sale of the exchangeitem, use of the exchange item for a purchase transaction with amerchant associated with the merchant server 924, and modification ofthe exchange item in accordance with the EI rule set 952.

The transferring the secure custody of the exchange item from theinitial owner computing device 928 to the EI buyer computing device 926includes creating, by the sale processing 938, an offer for sale digitalfile for the exchange item in response to an offer for sale request fromthe initial owner computing device 928 and writing the offer for saledigital file for the exchange item to the marketplace database 20 (e.g.,a virtual marketplace database) that includes a user interface forcomputing devices of the data communication system to view offer forsale digital files for a plurality of exchange items. The transferringfurther includes the sale processing 938 receiving purchase information970 that includes a request to purchase the exchange item from the EIbuyer computing device 926 and upon successful execution of thepurchase, transferring the secure custody of the exchange item to the EIbuyer computing device 926. For example, the sale processing 938exchanges sale verification 968 with the EI trusted module 922 to updatethe transaction blockchain to indicate that the EI buyer computingdevice 926 is purchasing the exchange item from the initial ownercomputing device 928.

The transferring the secure custody of the exchange item from the firstcomputing device to the second computing device may further include thesale processing 938 transferring, in response to another exchange itemtransfer and in accordance with the secure custody protocol, the securecustody of the exchange item from the second computing device to themarketplace server 18 or to a third computing device of the datacommunication system. The transferring the secure custody of theexchange item from the first computing device to the second computingdevice may still further include the initial owner computing device 928sending a request to use the exchange item to the use processing 940 ofthe marketplace server 18, where the request to use the exchange itemidentifies the second computing device. When the use is authorized(e.g., the use processing 940 verifies that such use is authorized inaccordance with the EI rule set 952), the use processing 940 transfersthe secure custody of the exchange item to the second computing devicefor the second computing device to execute the use, where the secondcomputing device changes the quantifiable value of the exchange item toproduce a use modified exchange item (e.g., modified EI info 1030), andthe use processing 940 transfers secure custody of the use modified EIinfo 1030 from the second computing device to the first computingdevice.

When transferring the secure custody of the exchange item from theinitial owner computing device 928 (e.g., the first computing device) tothe EI buyer computing device 926 (e.g., the second computing device),the rule processing 942 of the marketplace server 18 determines whethera change to the data of the exchange item occurred while the exchangeitem is in the secure custody of the second computer. For example, therule processing 942 indicates the change to the data when the useprocessing 940 receives merchant use information 980 from the merchantserver 924 in response to the EI buyer computer device 926 issuing buyeruse information 976 to the use processing 940 to facilitate the purchasetransaction with the merchant server 924.

When the change to the data of the exchange item occurred while theexchange item is in the secure custody of the second computer, the useprocessing 940 of the marketplace server 18 determines whether theexchange item is exhausted (e.g., a remaining balance of zero). When theexchange item is exhausted, the use processing 940 retires the exchangeitem (e.g., removes the exchange item from the marketplace database 20and/or issues retirement information to a current owner of exchangeitem.

When the exchange item is in the secure custody of the server, the ruleprocessing 942 of the marketplace server 18 may modify the data of theexchange item to produce a modified exchange item. The modifying of thedata of the exchange item includes identifying a set of rules regardingthe exchange item, where the set of rules includes one or more rules,where a rule of the set of rules includes an amount of data change andone or more conditions on when to apply the amount of change. Themodifying further includes the rule processing 942 determining that acondition involving the first computing device conforms to the one ormore conditions and when the condition involving the first computingdevice conforms to the one or more conditions, the rule processing 942modifies the data of the exchange item in accordance with the amount ofchange (e.g., updates the marketplace database 20). Having modified thedata of the exchange item, the rule processing 942 transfers securecustody of the modified exchange item to the initial owner computingdevice 928 device in accordance with the secure custody protocol.

FIG. 18M is a logic diagram of an embodiment of another method formodifying an exchange item in an exchange item marketplace network. Inparticular, a method is presented for use in conjunction with one ormore functions and features described in conjunction with FIGS. 1-17E,18A-L, and also FIG. 18M. The method includes step 1100 where aprocessing module of a server (e.g., a marketplace server of acommunication system) establishes an initial validity of an exchangeitem that includes data regarding a quantifiable value, a serial number,and issuance information, where the initial validity authenticates theexchange item and the data. The establishing may include receiving aplurality of exchange items from an issuing server, where the pluralityof exchange items includes the exchange item, and establishing theinitial validity of an exchange item with the issuing server.

The method continues at step 1102 where the processing module executes asecure custody protocol to establish that a first computing device ofthe data communication system has secure custody of the exchange itemand to maintain validity of the exchange item. For example, theprocessing module generates a secure transaction block of a transactionblockchain, where the secure transaction block indicates that the firstcomputing device has secure custody.

The method continues to step 1104 where the processing module transfers,in response to an exchange item transfer and in accordance with thesecure custody protocol, the secure custody of the exchange item fromthe first computing device to the server or to a second computing deviceof the data communication system (e.g., for a sale, a purchase, or amodification). The method branches to step 1112 when transferring to theserver. When transferring to the second computing device, thetransferring the secure custody of the exchange item from the firstcomputing device to the second computing device includes creating anoffer for sale digital file for the exchange item in response to anoffer for sale request from the first computing device the offer forsale digital file for the exchange item to a virtual marketplacedatabase that includes a user interface for computing devices of thedata communication system to view offer for sale digital files for aplurality of exchange items, receiving a request to purchase theexchange item from the second computing device, and upon successfulexecution of the purchase, transferring the secure custody of theexchange item to the second computing device.

The transferring the secure custody of the exchange item from the firstcomputing device to the second computing device may further includetransferring, in response to another exchange item transfer and inaccordance with the secure custody protocol, the secure custody of theexchange item from the second computing device to the server or to athird computing device of the data communication system. Thetransferring the secure custody of the exchange item from the firstcomputing device to the second computing device may still furtherinclude sending, by the first computing device, a request to use theexchange item to the server, where the request to use the exchange itemidentifies the second computing device. When the use is authorized,processing module transfers the secure custody of the exchange item tothe second computing device for the second computing device to executethe use, where the second computing device changes the quantifiablevalue of the exchange item to produce a use modified exchange item, andtransfers secure custody of the use modified exchange item from thesecond computing device to the first computing device.

When transferring the secure custody of the exchange item from the firstcomputing device to the second computing device, the method continues atstep 1106 where the processing module determines whether a change to thedata of the exchange item occurred while the exchange item is in thesecure custody of the second computing device (e.g., a lowering of aremaining balance based on usage of the exchange item). When the changeto the data of the exchange item occurred while the exchange item is inthe secure custody of the second computing device, the method continuesat step 1108 where the processing module determines whether the exchangeitem is exhausted (e.g., remaining balance has reached zero). When theexchange item is exhausted, the method continues at step 1110 where theprocessing module retires the exchange item.

When the exchange item is in the secure custody of the server, themethod continues at step 1112 or the processing module modifies the dataof the exchange item to produce a modified exchange item. The modifyingthe data of the exchange item includes identifying a set of rulesregarding the exchange item, where the set of rules includes one or morerules, where a rule of the set of rules includes an amount of datachange and one or more conditions on when to apply the amount of change,determining that a condition involving the first computing deviceconforms to the one or more conditions, and when the condition involvingthe first computing device conforms to the one or more conditions,modifying the data of the exchange item in accordance with the amount ofchange. The method continues at step 1114 where the processing moduletransfers secure custody of the modified exchange item to the firstcomputing device in accordance with the secure custody protocol.

The method described above in conjunction with the processing canalternatively be performed by other modules of the exchange itemmarketplace network or by other devices. In addition, at least onememory section (e.g., a computer readable memory, a non-transitorycomputer readable storage medium organized into a first memory section,a second memory section, a third memory section, a fourth memorysection, a fifth memory section etc.) that stores operationalinstructions can, when executed by one or more processing modules of oneor more computing devices (e.g., one or more servers) of the exchangeitem marketplace network, cause the one or more computing devices toperform any or all of the method steps described above.

FIG. 19A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 18C, the EI trusted module 922 of FIG. 18C,the marketplace server 18 of FIG. 18C, the marketplace database 20 ofFIG. 18C, and the initial owner computing device 928 of FIG. 18C. Theinitial owner computing device 928 includes the digital wallet 946 ofFIG. 18C. The marketplace server 18 includes the set up processing 936FIG. 18C. The marketplace database 20 includes the agreement database930 of FIG. 18C. The marketplace database 20 further includes theexchange item database 934 FIG. 18C. The entities of the exchange itemmarketplace network may be directly operably coupled and/or operablycoupled via the network 24 of FIG. 18C. The exchange item marketplacenetwork functions to invoke a secure custody protocol.

In an example of operation of the invoking of the secure custodyprotocol, the set up processing 936 identifies an active exchange itemthat is not associated with a desired security custody protocol. Theidentifying includes one or more of interpreting an entry of theexchange item database 934, interpreting a sale request for the exchangeitem from the initial owner computing device 928, and receiving arequest (e.g., from the EI issuing server 920). Having identified theexchange item, the set up processing 936 obtains EI information 950 andan associated EI rule set 952 for the exchange item. The obtainingincludes one or more of receiving as set of information 958 from theinitial owner computing device 928, receiving from the EI issuing server920, and generating based on an agreement with the EI issuing server 920associated with exchange item (e.g., from the agreement database 930).

Having obtained the EI information and the EI rule set, the set upprocessing 936 verifies the EI information and the EI rule set. Theverifying includes one or more of interpreting a query response from theEI issuing server 920 and interpreting trust information 954 from the EItrusted module 922, where the EI trusted module 922 exchanges set upverification 956 with the EI issuing server 920. When verified, the setup processing 936 invokes the security custody protocol for the exchangeitem. For example, the set up processing 936 generates a firsttransaction block of a transaction block chain, sends the transactionblock chain to the initial computing device 928 as set up information958, and updates the exchange item database 934.

FIG. 19B is a logic diagram of an embodiment of a method for invoking asecure custody protocol in an exchange item marketplace network. Themethod includes step 1120 where the processing module (e.g., of amarketplace server) identifies an active exchange item (EI) that is notassociated with a desired secure custody protocol. The identifyingincludes one or more of interpreting an entry of an exchange itemdatabase, interpreting a sale request for the exchange item from acomputing device, and receiving a request.

The method continues at step 1122 where the processing module obtains EIinformation and an associated EI rule set for the exchange item. Theobtaining includes one or more of receiving as set of information fromthe computing device, receiving from an EI issuing server, andgenerating based on an agreement with the EI issuing server associatedwith the exchange item. The method continues at step 1124 where theprocessing module verifies the EI information and the EI rule set. Theverifying includes one or more of interpreting a query response from theEI issuing server and interpreting trust information from an EI trustedmodule, where the EI trusted module exchanges set up verification withthe EI issuing server. When verified, the method continues at step 1126where the processing module invokes the secure custody protocol for theexchange item. For example, the processing module generates a firsttransaction block of a transaction block chain, since the transactionblock chain to the computing device, and updates an exchange itemdatabase.

FIG. 20A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 18C, an EI trusted module set 1130, themarketplace server 18 of FIG. 18C, the merchant server 924 of FIG. 18C,the marketplace database 20 of FIG. 18C, the EI buyer computing device926 of FIG. 18C, and the initial owner computing device 928 of FIG. 18C.The EI trusted module set 1130 includes a plurality of EI trustedmodules 922 of FIG. 18C. The initial owner computing device 928 includesthe digital wallet 946 of FIG. 18C. The EI buyer computing device 926includes the digital wallet 944 of FIG. 18C. The entities of theexchange item marketplace network may be directly operably coupledand/or operably coupled via the network 24 of FIG. 18C. The exchangeitem marketplace network functions to verify secure custody of anexchange item.

In an example of operation of the verifying of the secure custody, themarketplace server 18 obtains EI information 950 in accordance with asecure custody protocol. For example, a transaction block chain isutilized as the secure custody protocol and the marketplace serverselects a source based on an entry in the marketplace database 20 withregards to ownership, issues a query request, and receives the EIinformation 950 from one or more of the marketplace database, theinitial owner computing device 928, the EI buyer computing device 926,the EI issuing server 920, and the merchant server 924.

Having obtained the EI information, the marketplace server 18 sends theEI information to the EI trusted module set 1130. The sending includesselecting one or more EI trusted modules (i.e. based on one or more ofavailability, performance history, from an authorized list, etc.), andtransmitting the EI information in accordance with the secure custodyprotocol to the EI trusted module set 1130 (e.g., signing thetransaction block chain).

Having sent the EI information, the marketplace server 18 receivessecure custody verification 1132 from the EI trusted module set 1130.The receiving includes receiving from one or more of the EI trustedmodules 922, where each of the EI trusted modules 922 verifies securityvalidity of the EI information in accordance with the secure custodyprotocol (i.e., exchange trust information 954 with the EI issuingserver 920 associated with the EI, verifying that security parameters ofthe secure custody protocol are valid, where the security parametersinclude one or more of nonces and signatures of the transaction blockchain).

Having received the secure custody verification 1132, the marketplaceserver 18 indicates an unfavorable security custody protocol associatedwith the exchange item when the secure custody verification indicatesthat one or more security parameters of the secure custody protocol areinvalid (e.g., an invalid signature, an invalid nonce). The indicatingincludes issuing a security alert to one or more entities of theexchange item marketplace network, and updating the marketplace databaseto indicate the invalid one or more security parameters.

FIG. 20B is a logic diagram of an embodiment of a method for verifyingsecure custody of an exchange item in an exchange item marketplacenetwork. The method includes step 1140 where a processing module (e.g.,of a marketplace server) obtains exchange item (EI) information inaccordance with a secure custody protocol. For example, when atransaction block chain is utilized as the secure custody protocol,processing module selects a source (e.g., based on an entry in amarketplace database with regards to ownership), issues a queryresponse, and receives the EI information from the selected source ofthe exchange item marketplace network.

The method continues at step 1142 where the processing module sends theEI information to an EI trusted module set. The sending includes one ormore of selecting one or more EI trusted modules of the EI trustedmodule set (i.e., based on one or more of availability, performancehistory, and included within an authorized list of EI trusted modules),and transmitting the EI information in accordance with the securecustody protocol to the EI trusted module set.

The method continues at step 1144 where the processing module receivessecure custody verification information from the EI trusted module set,where one or more of the EI trusted modules verifies security validityof the EI information in accordance with the secure custody protocol(i.e., validating security parameters including nonsense and signaturesof transaction blocks of a transaction block chain). The methodcontinues at step 1146 where the processing module indicates anunfavorable security custody protocol associated with the EI when thesecurity custody verification indicates that one or more securityparameters of the secure custody protocol are invalid. The indicatingincludes correlating verification information from two or more EItrusted modules of the EI trusted module set, issuing a security alertto one or more entities of the exchange item marketplace network, andupdating a marketplace database to indicate the invalid one or moresecurity parameters.

FIG. 21A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the marketplace server18 of FIG. 18C, the exchange item (EI) buyer computing device 926 ofFIG. 18C, the point-of-sale (POS) equipment 32 of FIG. 2, the merchantserver 924 of FIG. 18C, and the marketplace database 20 of FIG. 18C. Themarketplace server 18 includes the use processing 940 of FIG. 18C. TheEI buyer computing device 926 includes the digital wallet 944 of FIG.18C. The exchange item marketplace network functions to optimizeexchange item utilization.

In an example of operation of the optimizing of the exchange itemutilization, the use processing 940 receives an indication of anintention to utilize one or more exchange items to support a purchasetransaction from the EI buyer computing device 926. The receivingincludes interpreting received EI acquisition information 1152 andinterpreting received merchant use information 980, where the EI buyercomputing device 926 issues buyer use information 976 to the POSequipment 32, the POS equipment 32 issues POS use information 1150 tothe merchant server 924, and the merchant server 924 issues the merchantuse information 980 to the marketplace server 18.

Having received the indication, the use processing 940 identifies one ormore exchange items associated with the EI buyer computing device 926.The identifying includes one or more of interpreting the EI acquisitioninformation 1152, interpreting a query response with regards to thedigital wallet 944 of the EI buyer computing device 926, andinterpreting a portion of the marketplace database 20 with regards tothe EI buyer computing device 926 (e.g., identifying exchange itemsassociated with the EI buyer computing device 926).

Having identified the one or more exchange items, the use processing 940identifies purchase requirements (e.g., payment amount, timing,restrictions, etc.) of the purchase transaction. The identifyingincludes interpreting the merchant use information 980. Havingidentified the purchase requirements, the use processing 940 identifiesalternative exchange items (e.g., more exchange items ready for quickacquisition to complete the purchase transaction) associated with themarketplace database 22 potentially support the purchase transactionbased on the identified purchase requirements and the identified one ormore exchange items associated with the EI buyer computing device 926.The identifying includes identifying and exchange item that whenutilized within an associated EI rule set is compatible with supportingthe purchase transaction (e.g., timing, restrictions, and amount arefavorable).

Having identified the alternative exchange items, the use processing 940generates a list of exchange item utilization solutions to support thepurchase transaction based on the identified one or more exchange items,the identified purchase requirements, and the identified alternativeexchange items. For example, the use processing 940 generates a map ofcombinations of one or more exchange items that are compatible with thepurchase transaction. Having generated the list of EI utilizationsolutions, the use processing 940 sends the list of EI utilizationsolutions as EI acquisition information 1152 to the EI buyer computingdevice 926.

Having sent the EI utilization solutions, the use processing 940facilitates completion of the purchase transaction, where the exchangeitem buyer computing device 926 selects and utilizes at least one entryof the list of EI utilization solutions. The facilitating includes oneor more of receiving further EI acquisition information from the EIbuyer computing device to facilitate purchase of one or more of thealternative exchange items and receiving merchant use information fromthe merchant server that includes utilization of the at least one entryof the list of exchange item utilization solutions.

FIG. 21B is a logic diagram of an embodiment of a method for optimizingexchange item utilization in an exchange item marketplace network. Themethod includes step 1160 where a processing module (e.g., of amarketplace server) receives, from a computing device, an indication ofan intention to utilize one or more exchange items to support a purchasetransaction. The receiving includes one or more of interpreting receivedEI acquisition information and interpreting received merchant useinformation. The method continues at step 1162 where the processingmodule identifies one or more exchange items associated with thecomputing device. The identifying includes one or more of interpretingthe EI acquisition information, interpreting a query response withregards to a digital wallet of the computing device, and interpreting aportion of a marketplace database with regards to the computing device.

The method continues at step 1164 with a processing module identifiespurchase requirements of the purchase transaction. The identifyingincludes interpreting the merchant use information (e.g., identifying apurchase amount, EI use restrictions, etc.). The method continues atstep 1166 where the processing module identifies alternative exchangeitems associated with an exchange item marketplace database topotentially support the purchase transaction based on the identifiedpurchase requirements and the identified one or more exchange itemsassociated with a computing device. The identifying includes identifyingan exchange item, that when utilized within an associated EI rule set iscompatible with supporting the purchase transaction.

The method continues at step 1168 where the processing module generatesa list of exchange item utilization solutions to support the purchasetransaction. The generating includes creating a map of combinations ofone or more exchange items that are compatible with the purchasetransaction (e.g., include outstanding available balances that whenadded together are greater than the purchase amount). The methodcontinues to step 1170 where the processing module sends the list ofexchange item utilization solutions to the computing device. The methodcontinues at step 1172 where the processing module facilitatescompletion of the purchase transaction, where the computing deviceselects and utilizes at least one entry in the list of EI utilizationsolutions. The facilitating includes one or more of receiving further EIacquisition information from the computing device to facilitate purchaseof one or more of the alternative exchange items and receiving merchantuse information from the merchant server that includes utilization ofthe at least one entry of the list of exchange item utilizationsolutions.

FIG. 22A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 18C, the EI trusted module 922 of FIG. 18C,the marketplace server 18 of FIG. 18C, the marketplace database 20 ofFIG. 18C, a legacy marketplace server 1180, and a legacy marketplacedatabase 1182. The legacy marketplace server 1180 may be implementedutilizing the marketplace server 18 of FIG. 2 and the legacy marketplacedatabase 1182 may be implemented utilizing the marketplace database 20of FIG. 2, where storage of exchange item information within the legacymarketplace database 1182 is not associated with a secure custodyprotocol and storage of exchange item information within the marketplacedatabase 20 is associated with the secure custody protocol. Themarketplace server 18 includes the setup processing 936 of FIG. 18C. Theexchange item marketplace network functions to transfer an exchange iteminto a secure custody environment (e.g., exchange items from the legacymarketplace database 1182 transferred to the marketplace database 20).

In an example of operation of the transferring of the exchange item,setup processing 936 identifies an active exchange item that is notassociated with a desired security custody protocol, where the exchangeitem is associated with the legacy marketplace database 1182 and thelegacy marketplace server 1180. The identifying includes one or more ofexchanging setup information 958 with the legacy marketplace server 1180including a request to transfer the exchange item, receiving a responsethat includes a portion of the legacy marketplace database, interpretingan entry of the legacy marketplace database, and interpreting a salerequest for the exchange item from a local computing device.

Having identified the exchange item, the setup processing 936 obtains EIinformation 950 and an associated EI rule set 952 for the exchange item.The obtaining includes at least one of receiving as set up information958, obtaining from the EI issuing server 920, and generating based onan agreement with the EI issuing server associated with exchange item.Having obtained the EI information and the associated EI rule set, thesetup processing 936 verifies the EI information and the EI rule set.The verifying includes one or more of interpreting a query response fromthe EI issuing server 920 and interpreting trust information 954 fromthe EI trusted module 922, where the EI trusted module 922 exchanges setup verification 956 with the EI issuing server 920.

When verified, the setup processing 936 invokes the secure custodyprotocol for the exchange item. For example, the setup processing 936generates a first transaction block of a transaction black chain toinclude the EI information 950 and the EI rule set 952. As anotherexample, the setup processing 936 stores one or more of the EIinformation, the EI rule said, and the transaction black chain in themarketplace database 20. As yet another example, the marketplace server18 issues further set up information 958 to the legacy marketplaceserver 1180 to delete the exchange item from the legacy marketplacedatabase 1182 upon confirmation of storage of the exchange item in themarketplace database 20 in accordance with the secure custody protocol.

FIG. 22B is a logic diagram of an embodiment of a method fortransferring an exchange item to a secure custody environment in anexchange item marketplace network. The method includes step 1190 where aprocessing module (e.g., of a marketplace server) identifies an exchangeitem (EI) that is not associated with a desired security custodyprotocol, where the EI is recorded within a legacy marketplace server.The identifying includes one or more of issuing set up information thatincludes a request to transfer exchange item to the legacy marketplaceserver, receiving a response that includes a portion of a legacymarketplace database, interpreting an entry of the legacy marketplacedatabase, and interpreting a sale request for the exchange item from alocal computing device.

The method continues at step 1192 where the processing module obtains EIinformation and an associated EI rule set for the exchange item. Theobtaining includes one or more of receiving the EI information and setup information, obtaining the information and rule set from an EIissuing server, and generating based on an agreement with the EI issuingserver associated with exchange item. The method continues at step 1194where the processing module verifies the EI info and the EI rule set.The verifying includes one or more of interpreting a query response fromthe EI issuing server and interpreting trust information from an EItrusted module, where the EI trusted module exchanges set up inverification with the EI issuing server.

When verified, the method continues at step 1196, where the processingmodule invokes the secure custody protocol for the exchange item. Theinvoking includes one or more of generating a first transaction block ofa transaction black chain and storing the exchange item in themarketplace database utilizing the secure custody protocol.

FIG. 23A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 18C, the merchant server 924 of FIG. 18C, themarketplace server 18 of FIG. 18C, the marketplace database 20 of FIG.18C, and the EI buyer computing device 926 of FIG. 18C. The EI buyercomputing device 926 includes the digital wallet 944 of FIG. 18C. Themarketplace server 18 includes the set up processing 936 FIG. 18C andthe use processing 940 of FIG. 18C. The entities of the exchange itemmarketplace network may be directly operably coupled and/or operablycoupled via the network 24 of FIG. 18C. The exchange item marketplacenetwork functions to create a branded exchange item (EI).

In an example of operation of the creating of the branded exchange item,the set up processing 936 identifies a brand for creation of an exchangeitem. The identifying may be based on one or more of a historicalpurchase pattern, a use pattern, environmental trends, currentconditions, current rules, and a use request. For example, the set upprocessing 936 identifies a brand associated with a higher than averagepurchase rate within a particular geographic region.

Having identified the brand, the set up processing 936 generates EIcreation information 1200. The generating may be based on one or more ofthe brand, a particular use request, and historical EI information forthe brand. Having generated the EI creation information, the set upprocessing 936 sends the EI creation information 1200 to the EI issuingserver 920 to request creation of the exchange item associated with thebrand, where the brand is associated with the EI issuing server 920. Thesending includes transmitting the EI creation information 1200 to the EIissuing server 920, receiving a confirmation response, and may includesending payment information 1202 to the EI issuing server 920 (i.e., atemporary brand licensing fee).

Having sent the EI creation information, the set up processing 936updates the marketplace database 22 include EI information for the newlycreated exchange item. The updating includes modifying an exchange itemdatabase to include the new EI and may include facilitating sale of theexchange item to the EI buyer computing device 926. Subsequent toacquisition of the EI by the EI buyer computing device 926, the useprocessing 940 receives merchant use information 980 from the merchantserver 924 when the EI buyer computing device 926 utilizes the EI in apurchase transaction with a merchant associated with the merchant server924 and may further receive buyer use information 976 from the EI buyercomputing device 926, where the buyer use information 976 corresponds tothe merchant use information 980.

Having received the merchant use information 980, the use processing 940facilitates use of the exchange item to complete the purchasetransaction, which may include paying the EI issuing server 920 a brandlicensing use fee. For example, the use processing 940 issues paymentinformation to the merchant server 924 and payment information 1082 tothe EI issuing server 920, where the payment information 1202 includes acommission (i.e., the brand licensing fee), while retraining acommission for the marketplace server 18.

FIG. 23B is a logic diagram of an embodiment of a method for creating abranded exchange item in an exchange item marketplace network. Themethod includes step 1210 where a processing module (e.g., of amarketplace server) identifies a brand for creation of an exchange item(EI). The identifying may be based on one or more of a historicalpurchase record, use information, environmental trends, currentconditions, current rules, and an EI use request.

The method continues at step 1212 where the processing module generatesEI creation information. The generating may be based on one or more ofthe brand, a use request, and historical EI information for the brand.The method continues at step 1214 where the processing module sends theEI creation information to a brand server associated with the brand torequest creation of the exchange item. The sending includes transmittingthe EI creation information to the brand server, receiving aconfirmation response, and may include sending payment information tothe brand server for the EI creation (i.e., a brand licensing fee).

The method continues at step 1216 where the processing module updatesand exchange item marketplace database to include the new EI. Theupdating includes modifying the EI database to include the new EI, andmay include facilitating sale of the EI to a computing device. Themethod continues at step 1218, where subsequent to acquisition of the EIby the computing device, the processing module receives merchant useinformation from a merchant server when the computing device utilizesthe EI in a purchase transaction. The method continues at step 1220where the processing module facilitates use of the EI to complete thepurchase transaction. The facilitating includes issuing paymentinformation to the merchant server and a commission payment (i.e.,another brand licensing fee) to the brand server while retaining acommission associated with the server of the processing module.

It is noted that terminologies as may be used herein such as bit stream,stream, signal sequence, etc. (or their equivalents) have been usedinterchangeably to describe digital information whose contentcorresponds to any of a number of desired types (e.g., data, video,speech, audio, etc. any of which may generally be referred to as‘data’).

As may be used herein, the terms “substantially” and “approximately”provides an industry-accepted tolerance for its corresponding termand/or relativity between items. Such an industry-accepted toleranceranges from less than one percent to fifty percent and corresponds to,but is not limited to, component values, integrated circuit processvariations, temperature variations, rise and fall times, and/or thermalnoise. Such relativity between items ranges from a difference of a fewpercent to magnitude differences. As may also be used herein, theterm(s) “configured to”, “operably coupled to”, “coupled to”, and/or“coupling” includes direct coupling between items and/or indirectcoupling between items via an intervening item (e.g., an item includes,but is not limited to, a component, an element, a circuit, and/or amodule) where, for an example of indirect coupling, the intervening itemdoes not modify the information of a signal but may adjust its currentlevel, voltage level, and/or power level. As may further be used herein,inferred coupling (i.e., where one element is coupled to another elementby inference) includes direct and indirect coupling between two items inthe same manner as “coupled to”. As may even further be used herein, theterm “configured to”, “operable to”, “coupled to”, or “operably coupledto” indicates that an item includes one or more of power connections,input(s), output(s), etc., to perform, when activated, one or more itscorresponding functions and may further include inferred coupling to oneor more other items. As may still further be used herein, the term“associated with”, includes direct and/or indirect coupling of separateitems and/or one item being embedded within another item.

As may be used herein, the term “compares favorably”, indicates that acomparison between two or more items, signals, etc., provides a desiredrelationship. For example, when the desired relationship is that signal1 has a greater magnitude than signal 2, a favorable comparison may beachieved when the magnitude of signal 1 is greater than that of signal 2or when the magnitude of signal 2 is less than that of signal 1. As maybe used herein, the term “compares unfavorably”, indicates that acomparison between two or more items, signals, etc., fails to providethe desired relationship.

As may also be used herein, the terms “processing module”, “processingcircuit”, “processor”, and/or “processing unit” may be a singleprocessing device or a plurality of processing devices. Such aprocessing device may be a microprocessor, micro-controller, digitalsignal processor, microcomputer, central processing unit, fieldprogrammable gate array, programmable logic device, state machine, logiccircuitry, analog circuitry, digital circuitry, and/or any device thatmanipulates signals (analog and/or digital) based on hard coding of thecircuitry and/or operational instructions. The processing module,module, processing circuit, and/or processing unit may be, or furtherinclude, memory and/or an integrated memory element, which may be asingle memory device, a plurality of memory devices, and/or embeddedcircuitry of another processing module, module, processing circuit,and/or processing unit. Such a memory device may be a read-only memory,random access memory, volatile memory, non-volatile memory, staticmemory, dynamic memory, flash memory, cache memory, and/or any devicethat stores digital information. Note that if the processing module,module, processing circuit, and/or processing unit includes more thanone processing device, the processing devices may be centrally located(e.g., directly coupled together via a wired and/or wireless busstructure) or may be distributedly located (e.g., cloud computing viaindirect coupling via a local area network and/or a wide area network).Further note that if the processing module, module, processing circuit,and/or processing unit implements one or more of its functions via astate machine, analog circuitry, digital circuitry, and/or logiccircuitry, the memory and/or memory element storing the correspondingoperational instructions may be embedded within, or external to, thecircuitry comprising the state machine, analog circuitry, digitalcircuitry, and/or logic circuitry. Still further note that, the memoryelement may store, and the processing module, module, processingcircuit, and/or processing unit executes, hard coded and/or operationalinstructions corresponding to at least some of the steps and/orfunctions illustrated in one or more of the Figures. Such a memorydevice or memory element can be included in an article of manufacture.

One or more embodiments have been described above with the aid of methodsteps illustrating the performance of specified functions andrelationships thereof. The boundaries and sequence of these functionalbuilding blocks and method steps have been arbitrarily defined hereinfor convenience of description. Alternate boundaries and sequences canbe defined so long as the specified functions and relationships areappropriately performed. Any such alternate boundaries or sequences arethus within the scope and spirit of the claims. Further, the boundariesof these functional building blocks have been arbitrarily defined forconvenience of description. Alternate boundaries could be defined aslong as the certain significant functions are appropriately performed.Similarly, flow diagram blocks may also have been arbitrarily definedherein to illustrate certain significant functionality.

To the extent used, the flow diagram block boundaries and sequence couldhave been defined otherwise and still perform the certain significantfunctionality. Such alternate definitions of both functional buildingblocks and flow diagram blocks and sequences are thus within the scopeand spirit of the claims. One of average skill in the art will alsorecognize that the functional building blocks, and other illustrativeblocks, modules and components herein, can be implemented as illustratedor by discrete components, application specific integrated circuits,processors executing appropriate software and the like or anycombination thereof.

In addition, a flow diagram may include a “start” and/or “continue”indication. The “start” and “continue” indications reflect that thesteps presented can optionally be incorporated in or otherwise used inconjunction with other routines. In this context, “start” indicates thebeginning of the first step presented and may be preceded by otheractivities not specifically shown. Further, the “continue” indicationreflects that the steps presented may be performed multiple times and/ormay be succeeded by other activities not specifically shown. Further,while a flow diagram indicates a particular ordering of steps, otherorderings are likewise possible provided that the principles ofcausality are maintained.

The one or more embodiments are used herein to illustrate one or moreaspects, one or more features, one or more concepts, and/or one or moreexamples. A physical embodiment of an apparatus, an article ofmanufacture, a machine, and/or of a process may include one or more ofthe aspects, features, concepts, examples, etc. described with referenceto one or more of the embodiments discussed herein. Further, from figureto figure, the embodiments may incorporate the same or similarly namedfunctions, steps, modules, etc. that may use the same or differentreference numbers and, as such, the functions, steps, modules, etc. maybe the same or similar functions, steps, modules, etc. or differentones.

Unless specifically stated to the contra, signals to, from, and/orbetween elements in a figure of any of the figures presented herein maybe analog or digital, continuous time or discrete time, and single-endedor differential. For instance, if a signal path is shown as asingle-ended path, it also represents a differential signal path.Similarly, if a signal path is shown as a differential path, it alsorepresents a single-ended signal path. While one or more particulararchitectures are described herein, other architectures can likewise beimplemented that use one or more data buses not expressly shown, directconnectivity between elements, and/or indirect coupling between otherelements as recognized by one of average skill in the art.

The term “module” is used in the description of one or more of theembodiments. A module implements one or more functions via a device suchas a processor or other processing device or other hardware that mayinclude or operate in association with a memory that stores operationalinstructions. A module may operate independently and/or in conjunctionwith software and/or firmware. As also used herein, a module may containone or more sub-modules, each of which may be one or more modules.

While particular combinations of various functions and features of theone or more embodiments have been expressly described herein, othercombinations of these features and functions are likewise possible. Thepresent disclosure is not limited by the particular examples disclosedherein and expressly incorporates these other combinations.

What is claimed is:
 1. A method comprises: establishing, by a server ina data communication system, an initial validity of an exchange itemthat includes data regarding a quantifiable value, a serial number, andissuance information, wherein the initial validity authenticates theexchange item and the data; executing, by the server, a secure custodyprotocol to establish that a first computing device of the datacommunication system has secure custody of the exchange item and tomaintain validity of the exchange item; transferring, in response to anexchange item transfer and in accordance with the secure custodyprotocol, the secure custody of the exchange item from the firstcomputing device to the server or to a second computing device of thedata communication system; when the exchange item is in the securecustody of the server, modifying, by the server, the data of theexchange item to produce a modified exchange item; and transferring, bythe server, secure custody of the modified exchange item to the firstcomputing device in accordance with the secure custody protocol.
 2. Themethod of claim 1 further comprises: determining, by the server, whethera change to the data of the exchange item occurred while the exchangeitem is in the secure custody of the second computing device; when thechange to the data of the exchange item occurred while the exchange itemis in the secure custody of the second computing device, determining, bythe server, whether the exchange item is exhausted; and when theexchange item is exhausted, retiring, by the server, the exchange item.3. The method of claim 1 further comprises: transferring, in response toanother exchange item transfer and in accordance with the secure custodyprotocol, the secure custody of the exchange item from the secondcomputing device to the server or to a third computing device of thedata communication system.
 4. The method of claim 1, wherein thetransferring to the second computing device comprises: creating, by theserver, an offer for sale digital file for the exchange item in responseto an offer for sale request from the first computing device; writing,by the server, the offer for sale digital file for the exchange item toa virtual marketplace database that includes a user interface forcomputing devices of the data communication system to view offer forsale digital files for a plurality of exchange items; receiving, by theserver, a request to purchase the exchange item from the secondcomputing device; and upon successful execution of the purchase,transferring, by the server, the secure custody of the exchange item tothe second computing device.
 5. The method of claim 1, wherein thetransferring to the second computing device comprises: sending, by thefirst computing device, a request to use the exchange item to theserver, wherein the request to use the exchange item identifies thesecond computing device; when the use is authorized: transferring, bythe server, the secure custody of the exchange item to the secondcomputing device for the second computing device to execute the use,wherein the second computing device changes the quantifiable value ofthe exchange item to produce a use modified exchange item; andtransferring, by the server, secure custody of the use modified exchangeitem from the second computing device to the first computing device. 6.The method of claim 1, wherein the modifying the data of the exchangeitem comprises: identifying, by the server, a set of rules regarding theexchange item, wherein the set of rules includes one or more rules,wherein a rule of the set of rules includes an amount of data change andone or more conditions on when to apply the amount of data change;determining, by the server, that a condition involving the firstcomputing device conforms to the one or more conditions; and when thecondition involving the first computing device conforms to the one ormore conditions, modifying, by the server, the data of the exchange itemin accordance with the amount of data change.
 7. The method of claim 1further comprises: receiving a plurality of exchange items from anissuing server, wherein the plurality of exchange items includes theexchange item; and establishing, by the server, the initial validity ofan exchange item with the issuing server.
 8. The method of claim 1,wherein the secure custody protocol comprises one or more of: a chain ofcustody mechanism; exchange item modification restrictions for computingdevices of the data communication system; and exchange item modificationrights for servers of the data communication system.
 9. A computerreadable memory comprises: a first memory section that storesoperational instructions that, when executed by a server of a datacommunication system, causes the server to: establish an initialvalidity of an exchange item that includes data regarding a quantifiablevalue, a serial number, and issuance information, wherein the initialvalidity authenticates the exchange item and the data; a second memorysection that stores operational instructions that, when executed by theserver, causes the server to: execute a secure custody protocol toestablish that a first computing device of the data communication systemhas secure custody of the exchange item and to maintain validity of theexchange item; a third memory section that stores operationalinstructions that, when executed by the server or the first computingdevice, causes the server or the first computing device to: transfer, inresponse to an exchange item transfer and in accordance with the securecustody protocol, the secure custody of the exchange item from the firstcomputing device to the server or to a second computing device of thedata communication system; and a fourth memory section that storesoperational instructions that, when executed by the server, causes theserver to: when the exchange item is in the secure custody of theserver, modify the data of the exchange item to produce a modifiedexchange item; and transfer secure custody of the modified exchange itemto the first computing device in accordance with the secure custodyprotocol.
 10. The computer readable memory of claim 9 further comprises:a fifth memory section that stores operational instructions that, whenexecuted by the server, causes the server to: determine whether a changeto the data of the exchange item occurred while the exchange item is inthe secure custody of the second computing device; when the change tothe data of the exchange item occurred while the exchange item is in thesecure custody of the second computing device, determine whether theexchange item is exhausted; and when the exchange item is exhausted,retire the exchange item.
 11. The computer readable memory of claim 9further comprises: a fifth memory section that stores operationalinstructions that, when executed by the server, causes the server to:transfer, in response to another exchange item transfer and inaccordance with the secure custody protocol, the secure custody of theexchange item from the second computing device to the server or to athird computing device of the data communication system.
 12. Thecomputer readable memory of claim 9, wherein the third memory sectionfurther stores operational instructions that, when executed by theserver, causes the server to transfer to the second computing device by:creating an offer for sale digital file for the exchange item inresponse to an offer for sale request from the first computing device;writing the offer for sale digital file for the exchange item to avirtual marketplace database that includes a user interface forcomputing devices of the data communication system to view offer forsale digital files for a plurality of exchange items; receiving arequest to purchase the exchange item from the second computing device;and upon successful execution of the purchase, transferring the securecustody of the exchange item to the second computing device.
 13. Thecomputer readable memory of claim 9, wherein the third memory sectionfurther stores operational instructions that, when executed by theserver or the first computing device, causes the server or the firstcomputing device to transfer to the second computing device by: sending,by the first computing device, a request to use the exchange item to theserver, wherein the request to use the exchange item identifies thesecond computing device; when the use is authorized: transferring, bythe server, the secure custody of the exchange item to the secondcomputing device for the second computing device to execute the use,wherein the second computing device changes the quantifiable value ofthe exchange item to produce a use modified exchange item; andtransferring, by the server, secure custody of the use modified exchangeitem from the second computing device to the first computing device. 14.The computer readable memory of claim 9, wherein the fourth memorysection further stores operational instructions that, when executed bythe server, causes the server to modify the data of the exchange itemby: identifying a set of rules regarding the exchange item, wherein theset of rules includes one or more rules, wherein a rule of the set ofrules includes an amount of data change and one or more conditions onwhen to apply the amount of data change; determining that a conditioninvolving the first computing device conforms to the one or moreconditions; and when the condition involving the first computing deviceconforms to the one or more conditions, modifying the data of theexchange item in accordance with the amount of data change.
 15. Thecomputer readable memory of claim 9 further comprises: a fifth memorysection that stores operational instructions that, when executed by theserver, causes the server to: receive a plurality of exchange items froman issuing server, wherein the plurality of exchange items includes theexchange item; and establish the initial validity of an exchange itemwith the issuing server.
 16. The computer readable memory of claim 9,wherein the secure custody protocol comprises one or more of: a chain ofcustody mechanism; exchange item modification restrictions for computingdevices of the data communication system; and exchange item modificationrights for servers of the data communication system.